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dc.contributor.authorSchmidt, Ulrichen_US
dc.contributor.authorTraub, Stefanen_US
dc.date.accessioned2009-12-11T15:11:57Z-
dc.date.available2009-12-11T15:11:57Z-
dc.date.issued2009en_US
dc.identifier.citationTheory and Decision 0040-5833 66 3 229-262en_US
dc.identifier.pidoi:10.1007/s11238-007-9062-2en_US
dc.identifier.urihttp://hdl.handle.net/10419/28786-
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.publisherSpringer Heidelberg-
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.titleAn experimental investigation of the disparity between WTA and WTP for lotteriesen_US
dc.typeArticleen_US
dc.identifier.ppn592397769en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:ifwkie:28786-
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