IDEAS home Printed from https://ideas.repec.org/p/ags/cuaewp/117657.html
   My bibliography  Save this paper

Disparity between Hunters' Willingness to Pay and Willingness to Accept Compensation: An Empirical Example

Author

Listed:
  • Stratton, Gary R.
  • Smathers, Webb M., Jr.
  • Gooding, Robert

Abstract

Willingness-to-pay (WTP) and willingness-to-accept (WTA) compensation models were estimated for hunters using a portion of the Clarks Hill wildlife Management Area during 1989-1990. Hunters' WTA values ranged from 2.8 to 8 times more than WTP. Income and wealth effects as well as property rights clearly contributed to this disparity in WTP and WTA compensation for the right to hunt in the wildlife Management Area. Responding hunters spent an average of $750 for hunting related activities or about five percent of their disposable income.

Suggested Citation

  • Stratton, Gary R. & Smathers, Webb M., Jr. & Gooding, Robert, 1992. "Disparity between Hunters' Willingness to Pay and Willingness to Accept Compensation: An Empirical Example," Working Papers 117657, Clemson University, Department of Agricultural and Applied Economics.
  • Handle: RePEc:ags:cuaewp:117657
    DOI: 10.22004/ag.econ.117657
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/117657/files/WP020592.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.117657?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Knetsch, Jack L., 1990. "Environmental policy implications of disparities between willingness to pay and compensation demanded measures of values," Journal of Environmental Economics and Management, Elsevier, vol. 18(3), pages 227-237, May.
    4. Bishop, Richard C. & Heberlein, Thomas A., 1979. "Measuring Values Of Extramarket Goods: Are Indirect Measures Biased?," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 277818, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Goodman, Allen C., 1989. "Identifying willingness-to-pay for heterogeneous goods with factorial survey methods," Journal of Environmental Economics and Management, Elsevier, vol. 16(1), pages 58-79, January.
    6. Don L. Coursey & John L. Hovis & William D. Schulze, 1987. "The Disparity Between Willingness to Accept and Willingness to Pay Measures of Value," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(3), pages 679-690.
    7. Brookshire, David S & Coursey, Don L, 1987. "Measuring the Value of a Public Good: An Empirical Comparison of Elicitation Procedures," American Economic Review, American Economic Association, vol. 77(4), pages 554-566, September.
    8. Gregory, Robin, 1986. "Interpreting measures of economic loss: Evidence from contingent valuation and experimental studies," Journal of Environmental Economics and Management, Elsevier, vol. 13(4), pages 325-337, December.
    9. Randall, Alan & Ives, Berry & Eastman, Clyde, 1974. "Bidding games for valuation of aesthetic environmental improvements," Journal of Environmental Economics and Management, Elsevier, vol. 1(2), pages 132-149, August.
    10. Clifford S. Russell, 1982. "Publicly Vested Values for Fish and Wildlife: Comment," Land Economics, University of Wisconsin Press, vol. 58(4), pages 559-562.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    2. Brown, Thomas C. & Gregory, Robin, 1999. "Why the WTA-WTP disparity matters," Ecological Economics, Elsevier, vol. 28(3), pages 323-335, March.
    3. Horowitz, John K. & McConnell, Kenneth E., 2002. "A Review of WTA/WTP Studies," Journal of Environmental Economics and Management, Elsevier, vol. 44(3), pages 426-447, November.
    4. Bowker, J. M. & MacDonald, H. F., 1992. "An Economic Analysis of Localized Pollution: Rendering Emissions in a Residential Setting," 1992 Annual Meeting, August 9-12, Baltimore, Maryland 271381, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Jung-Eun Kim & Jungsung Yeo, 2010. "Valuation of Consumers’ Personal Information: A South Korean Example," Journal of Family and Economic Issues, Springer, vol. 31(3), pages 297-306, September.
    6. Ulrich Schmidt & Stefan Traub, 2009. "An Experimental Investigation of the Disparity Between WTA and WTP for Lotteries," Theory and Decision, Springer, vol. 66(3), pages 229-262, March.
    7. Oben K Bayrak & Bengt Kriström, 2016. "Is there a valuation gap? The case of interval valuations," Economics Bulletin, AccessEcon, vol. 36(1), pages 218-236.
    8. Morrison, Gwendolyn C., 2000. "WTP and WTA in repeated trial experiments: Learning or leading?," Journal of Economic Psychology, Elsevier, vol. 21(1), pages 57-72, February.
    9. Bruno S. Frey & Reiner Eichenberger, 1989. "Should Social Scientists Care about Choice Anomalies?," Rationality and Society, , vol. 1(1), pages 101-122, July.
    10. Banzhaf, H. Spencer, 2016. "Constructing markets: environmental economics and the contingent valuation controversy," MPRA Paper 78814, University Library of Munich, Germany.
    11. Roth, Gerrit, 2006. "Predicting the Gap between Willingness to Accept and Willingness to Pay," Munich Dissertations in Economics 4901, University of Munich, Department of Economics.
    12. Sayman, Serdar & Onculer, Ayse, 2005. "Effects of study design characteristics on the WTA-WTP disparity: A meta analytical framework," Journal of Economic Psychology, Elsevier, vol. 26(2), pages 289-312, April.
    13. Morrison, Gwendolyn C., 1998. "Understanding the disparity between WTP and WTA: endowment effect, substitutability, or imprecise preferences?," Economics Letters, Elsevier, vol. 59(2), pages 189-194, May.
    14. Committee, Nobel Prize, 2017. "Richard H. Thaler: Integrating Economics with Psychology," Nobel Prize in Economics documents 2017-1, Nobel Prize Committee.
    15. Bromley, Daniel W., 1995. "Property rights and natural resource damage assessments," Ecological Economics, Elsevier, vol. 14(2), pages 129-135, August.
    16. John K. Horowitz & Kenneth E. McConnell & James J. Murphy, 2013. "Behavioral foundations of environmental economics and valuation," Chapters, in: John A. List & Michael K. Price (ed.), Handbook on Experimental Economics and the Environment, chapter 4, pages 115-156, Edward Elgar Publishing.
    17. Shogren, Jason F., 2006. "Experimental Methods and Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 19, pages 969-1027, Elsevier.
    18. Pavlo Blavatskyy & Ganna Pogrebna, 2010. "Endowment effects? “Even” with half a million on the table!," Theory and Decision, Springer, vol. 68(1), pages 173-192, February.
    19. Richard T. Carson & Miko_aj Czajkowski, 2014. "The discrete choice experiment approach to environmental contingent valuation," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 9, pages 202-235, Edward Elgar Publishing.
    20. Saito, Hiroharu, 2022. "Loss aversion for the value of voting rights: WTA/WTP ratios for a ballot," International Review of Law and Economics, Elsevier, vol. 69(C).

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:cuaewp:117657. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dacleus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.