Assessment of the Disparity between Willingness to Accept(WTA) and Willingness to Pay (WTP) by Value

Author

Yao-ji, JU ; Qian, ZHANG ; Hu Cai-mei

Author_Institution

Heilongjiang Univ. of Sci. & Technol., Harbin

fYear

2007

fDate

20-22 Aug. 2007

Firstpage

1184

Lastpage

1189

Abstract

This paper offers systematical reviews of the 30 years´ studies on the disparity between willingness to pay (WTP) and willingness to accept (WTA). The paper presents a new explanation of the disparity between willingness to pay (WTP) and willingness to accept (WTA), based on previous research, especially on the experiments on the gap of WTP and WTA and through the analysis of value and existence value. The explanation means that willingness to accept (WTA) subtract willingness to pay (WTP) equals existence value that cannot be transacted, or larger. The paper highlights a better solution to the disparity between willingness to pay (WTP) and willingness to accept (WTA), features the equation of calculating the existence value of every unit article, and introduces the use of this equation to explain the generation, change and disappearance of the existence value.

Keywords

economics; psychology; existence value; willingness to accept; willingness to pay; Conference management; Design for experiments; Documentation; Engineering management; Equations; Lifting equipment; Psychology; Technology management; Utility theory; existence value; existence value of every unit article; willingness to accept; willingness to pay;

fLanguage

English

Publisher

ieee

Conference_Titel

Management Science and Engineering, 2007. ICMSE 2007. International Conference on

Conference_Location

Harbin

Print_ISBN

978-7-88358-080-5

Electronic_ISBN

978-7-88358-080-5

Type

conf

DOI

10.1109/ICMSE.2007.4422006

Filename

4422006