The WTP/WTA Disparity: Have We Been Observing Dynamic Values but Interpreting Them as Static?

dc.contributor.author Kling, Catherine
dc.contributor.author List, John
dc.contributor.author Kling, Catherine
dc.contributor.author Zhao, Jinhua
dc.contributor.department Center for Agricultural and Rural Development
dc.date 2018-02-16T13:34:24.000
dc.date.accessioned 2020-06-30T01:04:11Z
dc.date.available 2020-06-30T01:04:11Z
dc.date.embargo 2015-06-16
dc.date.issued 2003-05-01
dc.description.abstract <p>This study advances, and experimentally tests, a new explanation for the disparity between willingness to pay (WTP) and willingness to accept (WTA)—a dynamic neoclassical theory based on the presence of commitment costs. While to date neoclassical models have not explained the observed data patterns well, we find that the commitment cost theory is able to explain adequately the causes and severity of the WTP/WTA value disparity. In particular, using data gathered from an actual marketplace, even the most stringent of our theoretical conjectures—cases where WTP values are predicted to exceed WTA values—oftentimes are met.</p>
dc.identifier archive/lib.dr.iastate.edu/card_workingpapers/352/
dc.identifier.articleid 1355
dc.identifier.contextkey 7226220
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath card_workingpapers/352
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/12690
dc.source.bitstream archive/lib.dr.iastate.edu/card_workingpapers/352/03wp333.pdf|||Fri Jan 14 23:44:42 UTC 2022
dc.subject.disciplines Agricultural and Resource Economics
dc.subject.disciplines Behavioral Economics
dc.subject.disciplines Economic Theory
dc.subject.disciplines Natural Resource Economics
dc.subject.keywords field experiment
dc.subject.keywords neoclassical theory
dc.subject.keywords willingness to accept
dc.subject.keywords willingness to pay
dc.subject.keywords WTP/WTA disparity.
dc.title The WTP/WTA Disparity: Have We Been Observing Dynamic Values but Interpreting Them as Static?
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isAuthorOfPublication 14c92c4e-682b-4115-b972-a8c4a58874ec
relation.isOrgUnitOfPublication 1a6be5f1-4f64-4e48-bb66-03bbcc25c76d
File
Original bundle
Now showing 1 - 1 of 1
Name:
03wp333.pdf
Size:
130.41 KB
Format:
Adobe Portable Document Format
Description:
Collections