The effect has been well-known in economics, law, and psychology for roughly 40 years (Thaler, 1980). The WTA/WTP disparity is an often-utilized measure of the endowment effect and this effect is one potential explanation for the WTA/WTP disparity. As such, both the WTA/WTP disparity and...
We show that this particular form of non-attendance can be substantial, pushes down the estimated payment vehicle parameter, and causes an upward bias in value estimates. Moreover, payment vehicle non-attendance affects willingness to accept (WTA) more than it does willingness to pay (WTP). As...