Does Uncertainty Affect the Divergence between WTP and WTA Measures?
AbstractMany empirical studies have demonstrated large discrepancies between willingness to accept (WTA) and willingness to pay (WTP) measures. This paper examines the extent to which uncertainty about the environmental quality improvement can lead to a divergence between WTP and WTA measures. Indirect utility function parameters and uncertainty about the environmental quality change affect the extent to which WTP and WTA measures can differ. These results have implications for design and implementation of contingent valuation surveys.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 4 (2004)
Issue (Month): 1 ()
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Find related papers by JEL classification:
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
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- Julie A. Caswell & Siny Joseph, 2007.
"Consumer Demand for Quality: Major Determinant for Agricultural and Food Trade in the Future?,"
Food Marketing Policy Center Research Reports
097, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
- Caswell, Julie & Joseph, Siny, 2007. "Consumer Demand for Quality: Major Determinant for Agricultural and Food Trade in the Future?," Research Reports 149196, University of Connecticut, Food Marketing Policy Center.
- Julie A. Caswell & Siny Joseph, 2007. "Consumer Demand for Quality: Major Determinant for Agricultural and Food Trade in the Future?," Working Papers 2007-4, University of Massachusetts Amherst, Department of Resource Economics.
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