A dynamic explanation of the willingness to pay and willingness to accept disparity
By: Catherine L. Kling, John A. List, Jinhua Zhao
Contributors: List, John A., 1968-; Zhao, Jinhua, 1966-; National Bureau of Economic Research
Series: NBER working paper series -- working paper 16483; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16483.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "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"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 3/10/2011.

Includes bibliographical references.

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