The impact of preferences on the WTP premium and the WTA premium

Tal Shavit (), Shosh Shahrabani and Uri Benzion

Applied Economics Letters, 2009, vol. 16, issue 14, 1439-1442

Abstract: The study examined the impact of preferences for an item on the Willingness to Pay (WTP) and Willingness to Accept (WTA). The results show that the differences between biddings for preferred and less preferred items are smaller in the selling position than in the buying position. This result can be explained by the existence of the ownership effect in the selling position for both preferred and less preferred items.

Date: 2009
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DOI: 10.1080/17446540802599739

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