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On the origin of the WTA-WTP divergence in public good valuation

Emmanuel Flachaire, Guillaume Hollard and Jason Shogren

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Abstract: This paper tests whether individual perceptions of markets as good or bad for a public good is correlated with the propensity to report gaps in willingness to pay and willingness to accept revealed within an incentive compatible mechanism. Identifying people based on a notion of market affinity, we find a substantial part of the gap can be explained by controlling for some variables that were not controlled for before. This result suggests the valuation gap for public goods can be reduced through well-defined variables.

Keywords: Experimental economics; Willingness to accept; Willingness to pay (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

Published in Theory and Decision, 2013, 74 (3), pp.431--437. ⟨10.1007/s11238-012-9295-6⟩

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Journal Article: On the origin of the WTA–WTP divergence in public good valuation (2013) Downloads
Working Paper: On the origin of the WTA-WTP divergence in public good valuation (2013)
Working Paper: On the origin of the wta-wtp divergence in public good valuation (2011) Downloads
Working Paper: On the origin of the wta-wtp divergence in public good valuation (2011) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01499638

DOI: 10.1007/s11238-012-9295-6

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