Working Out the Willingness to Accept and Willingness to Pay Gap Using Economics, Psychology, and Happiness Approaches to Valuation

• Main Author: Beja, Edsel L, Jr
• Format: text
• Published: Archīum Ateneo 2013
• Subjects: Willingness to Accept; Willingness to Pay; WTA-WTP gap; Valuation frameworks; Economics; Psychology; Happiness; Behavioral Economics
• Online Access: https://archium.ateneo.edu/economics-faculty-pubs/129; https://link.springer.com/article/10.1007/s11482-013-9271-5
• Institution: Ateneo De Manila University

The gap between willingness to accept and willingness to pay is an outcome of incomplete valuation procedure. The solution then is a complete valuation procedure. One approach presented in this paper focuses on the income and substitution effects as the missing items to the valuation procedure. Anot...