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Emotions, Morality and Public Goods: The WTA-WTP Disparity Revisited

Author

Listed:
  • Biel, Anders

    (Department of Psychology, Göteborg University)

  • Johansson-Stenman, Olof

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Nilsson, Andreas

    (Department of Psychology, Göteborg University)

Abstract

Empirical evidence suggests that people’s maximum willingness to pay for having a good is often substantially lower than their minimum willingness to accept not having it, and that this discrepancy tends to be especially large when valuing public goods. This paper hypothesizes that differences in emotions (e.g. regret) and moral perceptions can account for much of this discrepancy for public goods. A simple, real-money dichotomous-choice experiment is set up to test these hypotheses, which are largely supported.

Suggested Citation

  • Biel, Anders & Johansson-Stenman, Olof & Nilsson, Andreas, 2006. "Emotions, Morality and Public Goods: The WTA-WTP Disparity Revisited," Working Papers in Economics 193, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0193
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    File URL: http://hdl.handle.net/2077/2728
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    2. Loureiro, Maria L. & Gracia, Azucena & Nayga, Rodolfo M., 2013. "Do experimental auction estimates pass the scope test?," Journal of Economic Psychology, Elsevier, vol. 37(C), pages 7-17.

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    More about this item

    Keywords

    Willingness to pay; Willingness to accept gap; Endowment effect; Emotions; Ethics; Experiments;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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