Is There a Valuation Gap? The Case of Interval Valuations

We extend the literature on the willingness-to-pay/willingness-to-accept (WTP/WTA) disparity by testing two hypotheses, distilled from the literature. We also introduce a modified mechanism for eliciting the subjective valuation range if the individual cannot articulate the subjective value as a precise amount confidently. Our key finding is that the disparity disappears under the intervals treatment, suggesting that response format is...