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New Explanation for the Wtp/Wta Disparity (A)

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  • Kling, Catherine L.
  • Zhao, Jinhua

Abstract

We propose a new explanation for the WTP/WTA disparity in experiments and surveys. Uncertainty, irreversibility and limited learning opportunities can generate commitment costs, driving a wedge between WTP and WTA. We present experimental evidence that supports our hypothesis.

Suggested Citation

  • Kling, Catherine L. & Zhao, Jinhua, 2001. "New Explanation for the Wtp/Wta Disparity (A)," Staff General Research Papers Archive 5113, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:5113
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