Experiments on the Difference between Willingness to Pay and Willingness to Accept
Abstract"Willingness to pay" (WTP) and "willingness to accept" (WTA) measures of welfare change have been found to differ substantially when elicited from surveys or experimental market transactions. Conventional economic theory suggests that the difference between WTP and WTA should be smaller than those observed in empirical tests. This study focuses on the hypothesis that the availability of substitutes for the good being evaluated affects the difference between the two measures. The results suggest that the existence of a substitute does reduce the difference between WTP and WTA, however, the difference between these two measures is significant with or without substitutes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Land Economics.
Volume (Year): 69 (1993)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://le.uwpress.org/
You can help add them by filling out this form.
RePEc Biblio mentionsAs found on the RePEc Biblio, the curated bibliography for Economics:
- > Environmental and Natural Resource Economics > Environmental Economics > Valuation > Contingent valuation method > Willingness to pay versus willingness to accept
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.