Willingness to Pay and Willingness to Accept are Probably Less Correlated than You Think

@article{Chapman2017WillingnessTP,
  title={Willingness to Pay and Willingness to Accept are Probably Less Correlated than You Think},
  author={Jonathan Chapman and Mark Dean and Pietro Ortoleva and Erik Snowberg and Colin Camerer},
  journal={NBER Working Paper Series},
  year={2017}
}
Willingness to pay (WTP) and willingness to accept (WTA) a monetary amount for a lottery should be closely related. In data from an incentivized survey of a representative sample of 3,000 U.S. adults, we find that WTA and WTP for a lottery are, at best, weakly correlated. Across all respondents, the correlation is slightly negative. For the subgroups that we examine, the correlation is almost always small, typically statistically insignificant, and often negative. The exception is respondents… 

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