Zhao, Jinhua; Kling, Catherine L. - In: Economic Inquiry 42 (2004) 3, pp. 503-517
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)...