The Willingness to Pay—Willingness to Accept Gap, the "Endowment Effect," Subject Misconceptions, and Experimental Procedures for Eliciting Valuations: Comment

• Published in: The American economic review Vol. 101; no. 2; pp. 991 - 1011
• Main Authors: Isoni, Andrea, Loomes, Graham, Sugden, Robert
• Format: Journal Article
• Language: English
• Published: Nashville American Economic Association 01.04.2011
• Subjects: Coffee mugs; Commodities; Consumer behavior; Consumer behaviour; Design; Economics; Endowment; Endowment effect; Experiment design; Experimental economics; Experimental procedures; Experimental replication; Experiments; Fees; Hypotheses; Lotteries; Misconception; Risk aversion; Shorter Papers; Standard deviation; Studies; Valuation; Willingness to pay; United States > US

Plott and Zeiler (2005) report that the willingness-to-pay/willingness-to-accept disparity is absent for mugs in a particular experimental setting, designed to neutralize misconceptions about the procedures used to elicit valuations. This result has received sustained attention in the literature. Ho...