Article
A new explanation for the WTP/WTA disparity
Economics Letter
Document Type
Article
Disciplines
Publication Version
Submitted Manuscript
Publication Date
12-1-2001
DOI
10.1016/S0165-1765(01)00511-0
Abstract
We propose a new explanation for the WTP/WTA disparity in experiments and surveys. Uncertainty, irreversibility and limited learning opportunities can generate commitment costs, driving a wedge between WTP and WTA. We present experimental evidence that supports our hypothesis.
Citation Information
Jinhua Zhao and Catherine L. Kling. "A new explanation for the WTP/WTA disparity" Economics Letter Vol. 73 Iss. 3 (2001) p. 293 - 300 Available at: http://works.bepress.com/catherine_kling/102/
This is a working paper of an article from Economics Letters, 73(3) 2001; 293-300. DOI: 10.1016/S0165-1765(01)00511-0.