Convergence theorems of willingness-to-pay and willingness-to-accept for nonmarket goods
نویسندگان
چکیده
منابع مشابه
A Dynamic Explanation of the Willingness to Pay and Willingness to Accept Disparity
Recent evidence from laboratory experiments suggests that important disparities exist between willingness to pay (WTP) and compensation demanded for the same good. Because a fundamental postulate in neoclassical theory is that with small income effects and many available substitutes, the willingness to accept (WTA) and WTP measures of value for a commodity should be roughly equivalent, this fin...
متن کامل1 Information and the Divergence between Willingness - to - Accept and Willingness - to - Pay
There is considerable empirical and experimental evidence that there is a divergence between willingness-to-accept compensation to give up a good and willingness-to-pay to obtain a good. This divergence persists even when the good in question in small relative to income, a result in apparent conflict with standard economic theory. This paper develops a theoretical bidding model with costly info...
متن کاملPreference reversals and disparities between willingness to pay and willingness to accept in repeated markets
Previous studies suggest that two otherwise robust ‘anomalies’ – preference reversals and disparities between buying and selling valuations – are eroded when respondents participate in repeated markets. We report an experiment which investigates whether this is true when factors neglected in previous studies are controlled, and which distinguishes between anomalies revealed in the behaviour of ...
متن کاملA n exact relation between willingness to pay and willingness to accept *
I present a simple and precise relationship between the willingness-to-pay and the willingness-to-accept, or equivalently between the compensating and equivalent variations following an exogenous welfare change. One can be computed given the other as a function of income. 2003 Elsevier B.V. All rights reserved.
متن کاملDoes Anonymity Affect the Willingness To Accept and Willingness To Pay Gap?
Conventional value-elicitation experiments often find subjects provide higher valuations for items they posses than for identical items they may acquire. Plott and Zeiler (2005) find no difference in elicited valuations after implementing procedures that provide for anonymity and experience with the second-price mechanism. This paper investigates whether anonymity is a necessary for their resul...
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ژورنال
عنوان ژورنال: Social Choice and Welfare
سال: 2009
ISSN: 0176-1714,1432-217X
DOI: 10.1007/s00355-009-0416-2