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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