The WTP/WTA Disparity: Have We Been Observing Dynamic Values but Interpreting Them as Static? Kling, Catherine List, John Kling, Catherine Zhao, Jinhua
dc.contributor.department Center for Agricultural and Rural Development 2018-02-16T13:34:24.000 2020-06-30T01:04:11Z 2020-06-30T01:04:11Z 2015-06-16 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/
dc.identifier.articleid 1355
dc.identifier.contextkey 7226220
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath card_workingpapers/352
dc.source.bitstream archive/|||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
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relation.isOrgUnitOfPublication 1a6be5f1-4f64-4e48-bb66-03bbcc25c76d
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