Journal ArticleDOI
Despairing Over Disparities: Explaining the Difference Between Willingness to Pay and Willingness to Accept
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The authors examined the three major explanations for the disparity between WTP and WTA observed in contingent value surveys and laboratory experiments: a belief that the results must be biased in some fashion, Hanemann's (1991) substitutes hypothesis, and the loss aversion model proposed by Tversky and Kahneman (1991).Abstract:
This paper examines the three major explanations for the disparity between WTP and WTA observed in contingent value surveys and laboratory experiments: a belief that the results must be biased in some fashion, Hanemann's (1991) substitutes hypothesis, and the loss aversion model proposed by Tversky and Kahneman (1991). Starting from the assumption that individuals make utility maximizing choices, we develop structural equations that yield parametric tests of the hypotheses within a single, non-experimental framework. The approach is flexible enough to incorporate a variety of functional form and distributional assumptions and can be applied to either data from either open-ended bids or dichotomous choice questions.read more
Citations
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Journal ArticleDOI
Willingness to Pay and Willingness to Accept Compensation for Changes in Urban Water Customer Service Standards
TL;DR: In this article, the authors explore the use of choice modelling for obtaining implicit prices for attributes associated with changes in the reliability of household water services, and find that respondents value a larger range of attributes using the willingness to accept approach.
Journal ArticleDOI
Willingness to pay for threatened and endangered marine species: a review of the literature and prospects for policy use
Daniel K. Lew,Daniel K. Lew +1 more
TL;DR: A review and assessment of the suitability of existing TER species values as inputs for the analysis of marine and coastal policies, and the prospects and challenges for improving them are discussed in this article.
Dissertation
Evaluation économique et gestion viable de la forêt tropicale : réflexion sur un mode de coordination des usages d'une forêt de l'Est-Cameroun
TL;DR: In this article, a troisieme partie discute la pertinence du modele de gestion economique applique a la foret tropicale, car partielle et partiale, n'est pas en mesure d'apprecier les variables explicatives majeures de l'usage des ressources.
Journal ArticleDOI
Factors related to seatbelt-wearing among rear-seat passengers in Malaysia
TL;DR: Multinomial logistic regression analysis of the results of a questionnaire survey of rear-seat passengers revealed that rear- seat passengers who were younger, male, single and less educated and who had a perception of a low level of legislation enforcement were less likely to wear a rear seatbelt.
Journal ArticleDOI
A Consistent Method for Calibrating Contingent Value Survey Data
TL;DR: In this article, a statistical method for calibrating contingent value survey data derived from the assumption that individuals make constrained utility maximizing decisions was proposed, which allows us to determine the influence of respondent characteristics on bias, as distinct from their influence on preference parameters.
References
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Journal ArticleDOI
Loss Aversion in Riskless Choice: A Reference-Dependent Model
Amos Tversky,Daniel Kahneman +1 more
TL;DR: In this article, the authors present a reference-dependent theory of consumer choice, which explains such effects by a deformation of indifference curves about the reference point, in which losses and disadvantages have greater impact on preferences than gains and advantages.
Book ChapterDOI
Experimental Tests of the Endowment Effect and the Coase Theorem
TL;DR: In this paper, the Coase theorem predicts that about half the mugs will trade, but observed volume is always significantly less than the predicted volume, suggesting that transactions costs cannot explain the undertrading for consumption goods.
Journal ArticleDOI
Response strategies for coping with the cognitive demands of attitude measures in surveys
TL;DR: The authors proposed that when optimally answering a survey question would require substantial cognitive effort, some respondents simply provide a satisfactory answer instead, which can take the form of either (1) incomplete or biased information retrieval and/or information integration, or (2) no information retrieval or integration at all.
Posted Content
Consumer's Surplus Without Apology
TL;DR: In this article, it was shown that consumer's surplus can be used to estimate the unobservable compensating and equivalent variations, the correct theoretical measures of the welfare impact of changes in prices and income on an individual.
Journal ArticleDOI
Willingness To Pay and Willingness To Accept: How Much Can They Differ? Comment
TL;DR: Amiran and Hagen as mentioned in this paper showed that there can be a substantial divergence between the WTA and WTP for a public good even when there is a nonzero elasticity of substitution between market goods and the public good, provided that the indifference curves are asymptotically bounded.