In this paper we experimentally investigate the disparity between willingness-to-accept (WTA) and willingness-to-pay (WTP) for risky lotteries. The direction of the income effect is reversed by endowing subjects with the highest price of a lottery when asking the WTP question. Our results show that the income effect is too small to be the only source of the disparity. Since the disparity concentrates on a subsample of subjects, parametric and nonparametric tests of the WTA-WTP ratio may lead to contradictory results. The (...) disparity is significantly reduced when background risk is introduced. That is, putting subjects always into a risky position could improve the contingent valuation method, which is often concerned with the assessment of risky situations such as health risks, automobile safety, etc. (shrink)

This paper explores the psychological foundations of the 'Willingness to Pay/Willingness to Accept' discrepancy. Using a qualitative approach we find that the two response modes appear to invoke different strategies for completion. An examination of the heuristics used by respondents to answer questions concerning the buying and selling of the chance to play a straightforward lottery shows that only some could be taken as supporting current theories which aim to explain the discrepancy.

The aim of the article is to point out the problem that started in the 2018 US Open final between Naomi Osaka and Serena Williams. During this final match, there was a conflict between the player S. Williams and the chair umpire C. Ramos, which involved a violation of rules related to coaching during the match. Subsequently, C. Ramos was banned from officiating the Williams sisters' matches at the next 2019 US Open. The authors of the article believe that the (...) tennis organizations USTA and WTA did not judge the dispute between chair umpire C. Ramos and S. Williams in accordance with their rules, as the rules allow for the sanctioning of a player who is coached during a match. While the written rules and their application during play must be taken into consideration, so must the subjective interpretation and application of the rules by a particular umpire. If our arguments are correct, C. Ramos's application of the rules during this game was in no way inconsistent with his past practice or the rules themselves. Thus, C. Ramos was a victim of the entire incident, which was also influenced by the gender narrative after the match. (shrink)

We analyze the effects of uncertainty on WTA, WTP and the WTA–WTP gap. Extending the approach of Weber (Econom Lett 80:311–315, 2003) to the case of lotteries, we develop an exact expression for the WTA–WTP gap that allows identification of its magnitude under different utility specifications. Reinterpreting and extending results by Gabillon(Econom Lett 116:157–160, 2012), we also identify generally the relationship between an agent’s utility of income and the gap’s algebraic sign, as well as the effects of risk increases on (...) WTA and WTP. Finally, we derive the limit behavior of the gap as income or risk increase. (shrink)

Our thoughts, feelings, and behaviors are shaped in critical ways by our beliefs about how we compare to other people. Prior research has predominately focused on the consequences of believing oneself to be better than average (BTA). Research on the consequences of worse-than-average (WTA) beliefs has been far more limited, focusing mostly on the downsides of WTA beliefs. In this paper, we argue for the systematic investigation of the possible long-term benefits of WTA beliefs in domains including motivation, task performance, (...) and subjective well-being. We develop a conceptual framework for examining these possible benefits, we explore the usefulness of this framework to generate novel insights in an important psychological domain (skill learning), and we conclude with broader recommendations for research in other domains such as friendship formation, moral, and political decision making. (shrink)

This paper tests whether individual perceptions of markets as good or bad for a public good is correlated with the propensity to report gaps in willingness to pay and willingness to accept revealed within an incentive compatible mechanism. Identifying people based on a notion of market affinity, we find a substantial part of the gap can be explained by controlling for some variables that were not controlled for before. This result suggests the valuation gap for public goods can be reduced (...) through well-defined variables. (shrink)

This paper presents an experimental study of common consequence effects in binary choice, willingness-to-pay elicitation, and willingness-to-accept elicitation. We find strong evidence in favor of the fanning out hypothesis for both WTP and WTA. In contrast, the choice data do not show a clear pattern of violations in the absence of certainty effects. Our results underline the relevance of differences between pricing and choice tasks, and their implications for models of decision making under risk.

Winner-takes-all (WTA) typically describes a mechanism for selecting the highest peak of activity in a sensory map that encodes independent representations of potential targets. To Findlay & Walker, WTA is an inherent property of a motor map that is incapable of representing multiple targets independently. Although the output of a WTA system should be characteristic of only one target, actions can be influenced by multiple targets.

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 article 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. (shrink)

Artificial intelligence technology has been widely applied in many fields. AI-assisted learning environments have been implemented in classrooms to facilitate the innovation of pedagogical models. However, college students' willingness to accept AI-assisted learning environments has been ignored. Exploring the factors that influence college students' willingness to use AI can promote AI technology application in higher education. Based on the Unified Theory of Acceptance and Use of Technology and the theory of perceived risk, this study identified six factors that influence students' (...) willingness to use AI to analyze their relationships with WTA AI-assisted learning environments. A model including six hypotheses was constructed to test the factors affecting students' WTA. The results indicated that college students showed “weak rejection” of the construction of AI-assisted learning environments. Effort expectancy, performance expectancy, and social influence were all positively related to college students' WTA AI-assisted learning environments. Psychological risk significantly negatively influenced students' WTA. The findings of this study will be helpful for carrying out risk communication, which can promote the construction of AI-assisted learning environments. (shrink)

Third generation prospect theory is a theory of choices and of judgments of highest buying and lowest selling prices of risky prospects, i.e., of willingness to pay and willingness to accept. The gap between WTP and WTA is sometimes called the “endowment effect” and was previously called the “point of view” effect. Third generation prospect theory combines cumulative prospect theory for risky prospects with the theory that judged values are based on the integration of price paid or price received with (...) the consequences of gambles. In TGPT, the discrepancy between WTP and WTA is due to loss aversion-losses have greater absolute utility than gains of the same value. TGPT was developed independently of similar developments by Birnbaum and Zimmermann :145–187, 1998) and Luce. This paper reviews theoretical and empirical findings, to show that TGPT fails as a descriptive model of both choices and judgments. Evidence refutes three implications of TGPT, but they are consistent with configural weight models in which loss aversion is not needed to describe the results. In the configural weight models, buyers place greater weight on lower consequences, attributes or estimates of value compared to sellers, who place greater configural weight on higher aspects of an object or prospect. (shrink)

Część II pracy objaśnia molekularne podłoże pamięci w oparciu o założenia Neuro-Elektro- Dynamiki postulowanej przez Aura i Yoga. Wskazano na biofizyczne mechanizmy generacji wspomnień, refleksji i odczuć dzięki efatycznym sprzężeniom synaptycznym, spełniającym wymagania indukowania impresjonów Vadakkana. Wykazano, że działanie mechanizmu selekcyjnego WTA może być dobrym modelem opisującym funkcję przełączania uwagi. Wskazano na relacje między pamięcią roboczą, krótkoterminową i trwałą i ich spójność z molekularnymi procesami zapamiętywania i rozpoznawania wzorców. Wskazano, że trwała pamięć epizodyczna wymaga konwersji sekwencji czasowych sygnałów bottom-up do (...) rozkładu przestrzennego tworzącego impresjony dynamiczne. Odwrotna transformacja tych impresjonów umożliwia przypominanie epizodów z przeszłości. Omówiono znaczenie wrodzonych struktur sieci neuronowych zapewniających dziedziczenie zachowań instynktownych. Struktury te nie wykluczają zachowania plastyczności umysłu umożliwiającej efektywne uczenie. (shrink)

Brain structural covariance network can delineate the brain synchronized alterations in a long-range time period. It has been used in the research of cognition or neuropsychiatric disorders. Recently, causal analysis of structural covariance network, winner-take-all and cortex–subcortex covariance network, and modulation analysis of structural covariance network have expended the technology breadth of SCN. However, the lack of user-friendly software limited the further application of SCN for the research. In this work, we developed the graphical user interface toolkit of brain structural (...) covariance connectivity based on MATLAB platform. The software contained the analysis of SCN, CaSCN, MOD-SCN, and WTA-CSSCN. Also, the group comparison and result-showing modules were included in the software. Furthermore, a simple showing of demo dataset was presented in the work. We hope that the toolkit could help the researchers, especially clinical researchers, to do the brain covariance connectivity analysis in further work more easily. (shrink)