Endowment effect and the gap between WTP and WTA

Botao Qin

MPRA Paper from University Library of Munich, Germany

Abstract: I used an auction experiment in China and confirmed that there is a WTP-WTA gap. I used the solemn oath commitment device and found that it reduces the gap in the long possession treatment. However, the gap still exists in the short possession treatment. The evidence suggests that taking an oath to tell the truth with an incentive-compatible mechanism could mitigate the WTP-WTA gap.

Keywords: Endowment effect; WTP-WTA gap; Oath (search for similar items in EconPapers)
JEL-codes: C91 D46 (search for similar items in EconPapers)
Date: 2019-08
New Economics Papers: this item is included in nep-des and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/95764/1/MPRA_paper_95764.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:95764

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().