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

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Author Info

  • 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.

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File URL: http://hdl.handle.net/2077/2728
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 193.

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Length: 19 pages
Date of creation: 25 Jan 2006
Date of revision:
Handle: RePEc:hhs:gunwpe:0193

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research

Keywords: Willingness to pay; Willingness to accept gap; Endowment effect; Emotions; Ethics; Experiments;

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References

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Cited by:
  1. Bischoff, Ivo, 2006. "Endowment effect theory, prediction bias and publicly provided goods – an experimental study," Finanzwissenschaftliche Arbeitspapiere 75, Justus Liebig University Giessen, Fachbereich Wirtschaftswissenschaften.
  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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