Pricing risk and ambiguity: the effect of perspective taking
There is a large literature showing that willingness-to-accept (WTA) is usually much higher than willingness-to-pay (WTP) in empirical studies although they should be roughly equal according to traditional economic theory. A second stream of literature shows that people are typically ambiguity avers...
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| Main Authors: | , |
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| Format: | Book/Monograph Working Paper |
| Language: | English |
| Published: |
Kiel
Kiel Inst. for the World Economy
2011
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| Series: | Kiel working paper
1727 |
| In: |
Kiel working paper (1727)
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| Subjects: | |
| Online Access: | Verlag, Volltext: http://www.ifw-members.ifw-kiel.de//reference_catalog/lookupObject?uuid=44246d62e6b91f4a51419fbf83c94c68 Verlag, Volltext: http://www.ifw-members.ifw-kiel.de/publications/pricing-risk-and-ambiguity-the-effect-of-perspective-taking/kwp_1727 Download aus dem Internet, Stand: 02.09.2011, Volltext: http://hdl.handle.net/10419/49380 
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| Author Notes: | by Stefan T. Trautmann, and Ulrich Schmidt |
| Summary: | There is a large literature showing that willingness-to-accept (WTA) is usually much higher than willingness-to-pay (WTP) in empirical studies although they should be roughly equal according to traditional economic theory. A second stream of literature shows that people are typically ambiguity averse, i.e. they prefer lotteries with known probabilities over lotteries with unknown ones. Our study combines both streams of literature and analyzes whether there is an interaction between the WTP-WTA disparity and ambiguity aversion. -- WTP-WTA disparity ; ambiguity aversion ; comparative ignorance |
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| Physical Description: | Online Resource |
| Format: | Systemvoraussetzungen: Acrobat Reader. |