Kling, Catherine L.
[Verfasser:in]
;
List, John A.
[Sonstige Person, Familie und Körperschaft];
Zhao, Jinhua
[Sonstige Person, Familie und Körperschaft]National Bureau of Economic Research
A Dynamic Explanation of the Willingness to Pay and Willingness to Accept Disparity
Erschienen:
Cambridge, Mass: National Bureau of Economic Research, October 2010
Erschienen in:NBER working paper series ; no. w16483
Umfang:
1 Online-Ressource
Sprache:
Englisch
DOI:
10.3386/w16483
Identifikator:
Reproduktionsnotiz:
Hardcopy version available to institutional subscribers
Entstehung:
Anmerkungen:
Mode of access: World Wide Web
System requirements: Adobe [Acrobat] Reader required for PDF files
Beschreibung:
Evidence from laboratory experiments suggests that important disparities exist between willingness to pay (WTP) and compensation demanded for the same good. This study advances, and experimentally tests, a new explanation of the WTP/WTA disparity--a dynamic theory based on the presence of commitment costs. We find that the commitment cost theory combined with a simple behavioral anomaly is able to lend insights into the causes and severity of the WTA/WTP disparity. Further, we find that market experience attenuates the behavioral anomaly, consistent with the notion that no value disparity exists for agents with sufficient market experience