The willingness-to-accept/willingness-to-pay disparity in repeated markets: Loss aversion or 'bad-deal' aversion?

Arbeitspapier

Several experimental studies have reported that an otherwise robust regularity - the disparity between Willingness-To-Accept and Willingness-To-Pay - tends to be greatly reduced in repeated markets, posing a serious challenge to existing reference-dependent and reference-independent models alike. This paper offers a new account of the evidence, based on the assumptions that individuals are affected by good and bad deals relative to the expected transaction price (price sensitivity), with bad deals having a larger impact on their utility ('bad-deal'aversion). These features of preferences explain the existing evidence better than alternative approaches, including the most recent developments of loss aversion models.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CSERGE Working Paper EDM ; No. 09-06

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: WTA/WTP disparity ; price sensitivity ; bad-deal aversion ; reference-dependence ; loss aversion ; Willingness to pay ; Verlust ; Angst ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Isoni, Andrea
• Ereignis: Veröffentlichung
• (wer): University of East Anglia, The Centre for Social and Economic Research on the Global Environment (CSERGE)
• (wo): Norwich
• (wann): 2009

Weitere Informationen

• Handle: http://hdl.handle.net/10419/48811
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ