A new explanation for the WTP/WTA disparityEconomics Letter
Publication VersionSubmitted Manuscript
AbstractWe 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 InformationJinhua 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/