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dc.contributor.authorTraub, Stefanen_US
dc.contributor.authorSchmidt, Ulrichen_US
dc.date.accessioned2009-01-29T14:13:27Z-
dc.date.available2009-01-29T14:13:27Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/22014-
dc.description.abstractIn this paper we experimentally investigate the disparity between willingness-to-accept (WTA) and willingness-to-pay (WTP) for risky lotteries. The direction of the income effect is reversed by endowing subjects with the highest price of a lottery when asking the WTP question. Our results show that the income effect is too small to be the only source of the disparity. Since the disparity concentrates on a subsample of subjects, parametric and nonparametric tests of the WTA-WTP ratio may lead to contradictory results. The disparity is significantly reduced when background risk is introduced. That is, putting subjects always into a risky position could improve the contingent valuation method which is often concerned with the assessment of risky situations such as health risks, automobile safety, etc.en_US
dc.language.isoengen_US
dc.publisherChristian-Albrechts-Universität Kiel, Department of Economics Kielen_US
dc.relation.ispartofseriesEconomics working paper / Christian-Albrechts-Universität Kiel, Department of Economics 2006,09en_US
dc.subject.jelC91en_US
dc.subject.jelD81en_US
dc.subject.ddc330en_US
dc.subject.keywordWTA-WTP disparityen_US
dc.subject.keywordlotteriesen_US
dc.subject.keywordbackground risken_US
dc.subject.keywordcontingent valuationen_US
dc.subject.stwWillingness to payen_US
dc.subject.stwGlücksspielen_US
dc.subject.stwExperimenten_US
dc.subject.stwTheorieen_US
dc.titleAn Experimental Investigation of the Disparity between WTA and WTP for Lotteriesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn516512986en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:cauewp:4760-
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Economics Working Papers, Department of Economics, CAU Kiel

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