A new explanation for the WTP/WTA disparity
Journal or Book Title
First Page or Article ID Number
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.
D60, D83, C90
Zhao, Jinhua and Kling, Catherine L., "A new explanation for the WTP/WTA disparity" (2001). Economics Publications. 549.