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

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.
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https://hal-amu.archives-ouvertes.fr/hal-01499638
Contributor : Elisabeth Lhuillier <>
Submitted on : Friday, March 31, 2017 - 5:06:31 PM
Last modification on : Wednesday, August 5, 2020 - 3:17:07 AM

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Emmanuel Flachaire, Guillaume Hollard, Jason F. Shogren. On the origin of the WTA-WTP divergence in public good valuation. Theory and Decision, 2013, 74 (3), pp.431--437. ⟨10.1007/s11238-012-9295-6⟩. ⟨hal-01499638⟩

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