Kling, Catherine L.
[Verfasser:in]
;
List, John A.
[Sonstige Person, Familie und Körperschaft];
Zhao, Jinhua
[Sonstige Person, Familie und Körperschaft]
A Dynamic Explanation of the Willingness to Pay and Willingness to Accept Disparity
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 2010 erstellt
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