The willingness to pay-willingness to accept gap, the "endowment effect," subject misconceptions, and experiemntal procedures for eliciting valuations: A reassessment
AbstractPlott and Zeiler (2005) report that the willingness-to-pay/willingness-to-accept disparity is absent for mugs in a particular experimental setting, designed to neutralize misconceptions about the procedures used to elicit valuations. This result has received sustained attention in the literature. However, other data from that same study, not published in that paper, exhibit a significant and persistent disparity when the same experimental procedures are applied to lotteries. We report new data confirming both results, thereby suggesting that the presence or absence of a disparity may be a more complex issue than some may have supposed.
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 InfoPaper provided by School of Economics, University of East Anglia, Norwich, UK. in its series Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) with number 09-14.
Date of creation: 11 Nov 2009
Date of revision:
Postal: Helen Chapman, School of Economics, University of East Anglia, Norwich Research Park, Norwich, NR4 7TJ, UK
Find related papers by JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael Mandler, 2004. "Status quo maintenance reconsidered: changing or incomplete preferences?," Economic Journal, Royal Economic Society, vol. 114(499), pages F518-F535, November.
- Flachaire, Emmanuel & Hollard, Guillaume, 2008.
"Individual sensitivity to framing effects,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 67(1), pages 296-307, July.
- Emmanuel Flachaire & Guillaume Hollard, 2008. "Individual sensitivity to framing effects," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00176025, HAL.
- Lange, Andreas & Ratan, Anmol, 2010. "Multi-dimensional reference-dependent preferences in sealed-bid auctions - How (most) laboratory experiments differ from the field," Games and Economic Behavior, Elsevier, vol. 68(2), pages 634-645, March.
- Shogren, Jason F. & Hayes, Dermot J., 1997.
"Resolving Differences in Willingness to Pay and Willingness to Accept: Reply,"
Staff General Research Papers
1153, Iowa State University, Department of Economics.
- Shogren, Jason F & Hayes, Dermot J, 1997. "Resolving Differences in Willingness to Pay and Willingness to Accept: Reply," American Economic Review, American Economic Association, vol. 87(1), pages 241-44, March.
- Jay R. Corrigan & Matthew C. Rousu, 2008.
"Testing Whether Field Auction Experiments are Demand Revealing in Practice,"
0804, Kenyon College, Department of Economics.
- Corrigan, Jay R. & Rousu, Matthew C., 2008. "Testing Whether Field Auction Experiments Are Demand Revealing in Practice," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), August.
- Jay Corrigan & Matthew Rousu, 2008. "Testing whether field auction experiments are demand revealing in practice," Framed Field Experiments 00161, The Field Experiments Website.
- John List, 2003.
"Does market experience eliminate market anomalies?,"
Natural Field Experiments
00297, The Field Experiments Website.
- John A. List, 2003. "Does Market Experience Eliminate Market Anomalies?," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 41-71, February.
- Thaler, Richard, 1980. "Toward a positive theory of consumer choice," Journal of Economic Behavior & Organization, Elsevier, vol. 1(1), pages 39-60, March.
- Kolstad, Charles D. & Guzman, Rolando M., 1999. "Information and the Divergence between Willingness to Accept and Willingness to Pay," Journal of Environmental Economics and Management, Elsevier, vol. 38(1), pages 66-80, July.
- Kovalchik, Stephanie & Camerer, Colin F. & Grether, David M. & Plott, Charles R. & Allman, John M., 2003.
"Aging and decision making: A comparison between neurologically healthy elderly and young individuals,"
1180, California Institute of Technology, Division of the Humanities and Social Sciences.
- Kovalchik, Stephanie & Camerer, Colin F. & Grether, David M. & Plott, Charles R. & Allman, John M., 2005. "Aging and decision making: a comparison between neurologically healthy elderly and young individuals," Journal of Economic Behavior & Organization, Elsevier, vol. 58(1), pages 79-94, September.
- Jeremy Clark & Lana Friesen, 2006.
"The Causes of Order Effects in Contingent Valuation Surveys: An Experimental Investigation,"
Working Papers in Economics
06/06, University of Canterbury, Department of Economics and Finance.
- Clark, Jeremy & Friesen, Lana, 2008. "The causes of order effects in contingent valuation surveys: An experimental investigation," Journal of Environmental Economics and Management, Elsevier, vol. 56(2), pages 195-206, September.
- Knetsch, Jack L. & Wong, Wei-Kang, 2009. "The endowment effect and the reference state: Evidence and manipulations," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 407-413, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alasdair Brown).
If references are entirely missing, you can add them using this form.