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The WTP/WTA Discrepancy: A Preliminary Qualitative Examination

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  • Anthony C. Burton
  • Susan M. Chilton
  • Martin K. Jones

Abstract

This paper explores the psychological foundations of the 'Willingness to Pay/Willingness to Accept' discrepancy. Using a qualitative approach we find that the two response modes appear to invoke different strategies for completion. An examination of the heuristics used by respondents to answer questions concerning the buying and selling of the chance to play a straightforward lottery shows that only some could be taken as supporting current theories which aim to explain the discrepancy.

Suggested Citation

  • Anthony C. Burton & Susan M. Chilton & Martin K. Jones, 2000. "The WTP/WTA Discrepancy: A Preliminary Qualitative Examination," Environmental Values, , vol. 9(4), pages 481-491, November.
    • Handle: RePEc:sae:envval:v:9:y:2000:i:4:p:481-491
    DOI: 10.1177/096327190000900408
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    References listed on IDEAS

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    1. Jack L. Knetsch & J. A. Sinden, 1984. "Willingness to Pay and Compensation Demanded: Experimental Evidence of an Unexpected Disparity in Measures of Value," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(3), pages 507-521.
    2. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    3. Loomes, Graham & Sugden, Robert, 1982. "Regret Theory: An Alternative Theory of Rational Choice under Uncertainty," Economic Journal, Royal Economic Society, vol. 92(368), pages 805-824, December.
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