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The willingness to pay-willingness to accept gap, the "endowment effect," subject misconceptions, and experiemntal procedures for eliciting valuations: A reassessment

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Author Info

  • Andrea Isoni

    (University of East Anglia)

  • Graham Loomes

    (University of Warwick)

  • Robert Sugden

    (University of East Anglia)

Abstract

Plott 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.

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Bibliographic Info

Paper 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.

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Date of creation: 11 Nov 2009
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Handle: RePEc:uea:wcbess:09-14

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  2. repec:hal:cesptp:halshs-00176025 is not listed on IDEAS
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  16. repec:feb:framed:0078 is not listed on IDEAS
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