We propose a new explanation for the WTP/WTA disparity in experiments and surveys. Uncertainty, irreversibility and limited learning opportunities can generate commitment costs, driving a wedge between WTP and WTA. We present experimental evidence that supports our hypothesis.

Abstract Currently Unavailable.

In this article, we model money-back guarantees (MBGs) as put options. This use of option theory provides retailers with a framework to optimize the price and the return option independently and under various market conditions. This separation of product price and option value enables retailers...

The development of accurate non-point source pollution assessment technologies allows the implementation of more efficient policies than can be undertaken in their absence. This study estimates the value of accurate measurement technology by estimating the gains from implementing a more...

Hicksian welfare theory is static in nature, but many decisions are made in a dynamic environment. We present a dynamic model of an agent's decision to purchase or sell a good under the realistic conditions of uncertainty, irreversibility, and learning over time. Her willingness to pay (WTP)...

Abstract not available. 

A major concern with tradable emission permits is that stochastic permit prices may reduce a firm's incentive to invest in abatement capital or technologies relative to other policies such as a fixed emissions charge. However, under efficient permit trading, the permit price uncertainty is...

Regional prevalence of soybean Sclerotinia stem rot (SSR), caused by Sclerotinia sclerotiorum,was modeled using management practices (tillage, herbicide, manure and fertilizer application,and seed treatment with fungicide) and summer weather variables (mean monthly air temperature and...

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