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On the origin of the WTA-WTP divergence in public good valuation

Author

Listed:
  • Emmanuel Flachaire

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Guillaume Hollard

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Jason F. Shogren

    (UW - University of Wyoming, NMBU - Norwegian University of Life Sciences)

Abstract

This paper tests whether individual perceptions of markets as good or bad for a public good is correlated with the propensity to report gaps in willingness to pay and willingness to accept revealed within an incentive compatible mechanism. Identifying people based on a notion of market affinity, we find a substantial part of the gap can be explained by controlling for some variables that were not controlled for before. This result suggests the valuation gap for public goods can be reduced through well-defined variables.

Suggested Citation

  • Emmanuel Flachaire & Guillaume Hollard & Jason F. Shogren, 2013. "On the origin of the WTA-WTP divergence in public good valuation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01499638, HAL.
    • Handle: RePEc:hal:cesptp:hal-01499638
    DOI: 10.1007/s11238-012-9295-6
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    Cited by:

    1. Pierre-Alexandre Mahieu & Romain Craste & Bengt Kriström & Pere Riera, 2014. "Non-market valuation in France: An overview of the research activity," Working Papers hal-01087365, HAL.
    2. Christian A. Vossler & Stéphane Bergeron & Maurice Doyon & Daniel Rondeau, 2023. "Revisiting the Gap between the Willingness to Pay and Willingness to Accept for Public Goods," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 10(2), pages 413-445.
    3. Blignaut, James & Mander, Myles & Inglesi-Lotz, Roula & Glavan, Jane & Parr, Stephen, 2016. "The amenity value of Abu Dhabi's coastal and marine resources to its beach visitors," Ecosystem Services, Elsevier, vol. 19(C), pages 32-41.

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