John K. Horowitz

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Ž. Ž. Willingness to accept WTA is usually substantially higher than willingness to pay WTP. These constructs have been studied for roughly 30 years and with a wide variety of goods. This paper reviews those studies. We find that the less the good is like an ''ordinary market good,'' the higher is the ratio. The ratio is highest for non-market goods, next(More)
There has been a lively debate about the potential impact of global climate change on U.S. agriculture. Most of the early agro-economic studies predict large damages (see, (1994)-hereafter MNS-propose a new approach: using the variation in temperature and precipitation across U.S. counties to estimate a reduced form hedonic equation with the value of(More)
Benefit-cost analysis of government projects that reduce health risks over an extended period of time requires an estimate of the value of a future life. This in turn requires a discount rate. We suggest and carry out a method to estimate the discount rate using observations on discrete choices between projects with different time horizons. This method is(More)
The disparity between willingness-to-pay and willingness-to-accept, also known as compensation demanded, is a robust experimental finding. Two types of explanations been proposed. The first invokes psychological effects, broadly categorized as reference dependence and loss aversion. The second explanation is that there are large substitution effects but(More)
The typical model of individual attitudes toward risk-to-life suggests that an individual's willingness to pay for a reduction in mortality risk increases with the baseline risk. The higher-baseline hypothesis has been the subject of several empirical tests but results have so far been mixed. Using survey evidence, we present a situation in which subjects(More)
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This paper studies bidder behavior in an innovative program in which farmers compete to sell their development rights to the State. We derive a reduced form bidding model that includes both private value and common value components. This model allows us to estimate the role of bidder competition, the winner's curse correction, and the underlying(More)
Economists have struggled with the task of detecting collusion without a smoking gun. In this paper, we draw on the program evaluation literature to provide a new approach to detecting collusion. Rather than using data on treatment assignment and outcomes to evaluate effects, we use theory to put structure on expected effects, and show how to infer(More)
thank Charlie Plott and Kathryn Zeiler for providing the data set from their experiments, and for their help in designing our experimental procedures. We are grateful to Daniel Zizzo and Chris Starmer, an editor and three referees for comments and suggestions. Abstract Plott and Zeiler (2005) report that the willingness-to-pay/willingness-to-accept(More)