Willingness to pay and willingness to accept

A simple conceptual exposition

Dodo J. Thampapillai*

*Corresponding author for this work

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

A simple explanation within the theory of indifference curves is offered for the experimental observations concerning the disparity between willingness to pay (WTP) and willingness to accept (WTA). Following Morrison's evidence, this explanation rests largely on the endowment effect. Two demand curves which are distinguished in terms of WTP and WTA are derived.

Original languageEnglish
Pages (from-to)509-511
Number of pages3
JournalApplied Economics Letters
Volume7
Issue number8
Publication statusPublished - 2000
Externally publishedYes

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