There is a large literature showing that willingness-to-accept (WTA) is usually much higher than willingness-to-pay (WTP) in empirical studies although they should be roughly equal according to traditional economic theory. A second stream of literature shows that people are typically ambiguity...

A new explanation of loss aversion and the endowment effect is proposed. The model is based on the uncertain values of goods. The key element is that decision makers consider potential new knowledge about the goods they evaluate, in particular in situations when the seller may have more...