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The Willingness to Pay-Willingness to Accept Gap Revisited: The Role of Emotions and Moral Satisfaction

  • Biel, Anders

    (Department of Psychology)

  • Johansson-Stenman, Olof

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Nilsson, Andreas

    (Department of Psychology)

While many earlier studies have found that people’s maximum willingness to pay for having a good is often substantially lower than their minimum willingness to accept not having it, more recent experimental evidence suggests that this discrepancy vanishes for standard consumption goods when an incentive-compatible design without misconceptions is used. This paper hypothesises that there is nevertheless a discrepancy for goods with a perceived moral character, such as contributions to a good cause, and moreover that the reason for this discrepancy can largely be explained by differences in emotions and moral perceptions. The results from a real-money dichotomous-choice experiment, combined with measurements of emotions and morality, are consistent with these hypotheses.

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File URL: http://gupea.ub.gu.se/handle/2077/25390
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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 497.

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Length: 26 pages
Date of creation: 28 Apr 2011
Date of revision:
Handle: RePEc:hhs:gunwpe:0497
Contact details of provider: Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/

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