Scholarship at UMass Lowell - David Kingsley

Authors

Kingsley, David C.
David Kingsley serves on the faculty at UMass Lowell in the Department of Economics.

Brown, Thomas C.

Additional Information

Date Issued:  2012-11-16

Language:  en_US

Publisher: Economics Bulletin

Type:  Article

Description: David Kingsley serves on the faculty at UMass Lowell in the Department of Economics.

College of Fine Arts, Humanities & Social Sciences - Department of Economics

Published Research

Title

Does prompting for revision influence subjects' offers in willingness to accept -- willingness to pay lab experiments?

Citation

Kingsley, D., Brown, T. C. (2012, September 16). Does prompting for revision ifluence subjects' offers in willingness to accept -- willingness to pay lab experiments?. Economics Bulletin 32(3), 2580-2585. http://www.accessecon.com/includes/CountdownloadPDF.aspx?PaperID=EB-12-00581

Abstract

The willingness to accept – willingness to pay disparity raises questions about accepted economic theory. Plott and Zeiler (2005) have suggested that the disparity is the result of subject misconception about experimental procedures and, in an experiment designed to control for subject misconception, they show that the disparity can be turned on and off. This paper investigates a single feature of their experimental procedure—the prompt for subjects to consider revising their offers. Using the post-prompt and revision offers, we, like Plott and Zeiler, are unable to reject equality between WTA and WTP. However, using the pre-prompt and revision offers the disparity between WTP and WTA is shown to be significant. Results suggest that the prompt and revision opportunity systematically influences offers. Future research must determine whether the pre- or post-prompt offers more accurately reflect underlying preferences.