Moral dimensions of the WTA-WTP disparity: an experimental examination

Citation
J. Anderson et al., Moral dimensions of the WTA-WTP disparity: an experimental examination, ECOL ECON, 32(1), 2000, pp. 153-162
Citations number
34
Categorie Soggetti
Environment/Ecology,Economics
Journal title
ECOLOGICAL ECONOMICS
ISSN journal
09218009 → ACNP
Volume
32
Issue
1
Year of publication
2000
Pages
153 - 162
Database
ISI
SICI code
0921-8009(200001)32:1<153:MDOTWD>2.0.ZU;2-H
Abstract
Contrary to welfare economic theory, empirical evidence suggests that the a mount of money people are willing-to-accept (WTA) to forego a commodity wil l generally exceed the amount of money they are willing-to-pay (WTP) to gai n the commodity. This paper undertakes an experimental examination of the W TA-WTP disparity using conventional and ecologically produced eggs. The res ults of this experiment reveal that the difference between the mean WTP and WTA for conventional eggs is negligible while the mean WTA is more than 1. 5 times higher than the mean WTP in the case of ecological eggs. An explana tion for this result is offered following the Boyce et al. (Boyce, R.B., Br own, T.C., McClelland, G.H., Peterson, G.L., Schulze, W.D., 1992. An experi mental examination of intrinsic values as a sourer of the WTA-WTP disparity . Am. Econ. Rev. 82, 1366-1373) notion that an asymmetrical assignment of m oral responsibility may cause WTA to exceed WTP. By comparing the two studi es, a tentative conclusion is that the valuation disparity is likely to inc rease with a corresponding increase in the degree of assigned moral respons ibility. (C) 2000 Elsevier Science B.V. All rights reserved.