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Does the elicitation method impact the WTA/WTP disparity?

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  • Brebner, Sarah
  • Sonnemans, Joep

Abstract

The size of the Willingness To Accept (WTA)/Willingness To Pay (WTP) disparity is compared using the Becker–DeGroot–Marschak (BDM) and multiple price list (MPL) methods. A robust WTA/WTP disparity is found using both elicitation methods. The MPL elicitation method appears to result in a slightly larger effect compared with the BDM method, contradicting claims that misconceptions specific to the BDM method are a driving force of the WTA/WTP disparity.

Suggested Citation

  • Brebner, Sarah & Sonnemans, Joep, 2018. "Does the elicitation method impact the WTA/WTP disparity?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 73(C), pages 40-45.
    • Handle: RePEc:eee:soceco:v:73:y:2018:i:c:p:40-45
    DOI: 10.1016/j.socec.2018.01.006
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