15:00 - 16:40
P4-S86
Room: 0A.01
Chair/s:
Carmen Sainz Villalba
Discussant/s:
Daniela Giannetti
Delegation or Takeover of Decision Rights: Gains or Losses
P4-S86-1
Presented by: Carmen Sainz Villalba
Carmen Sainz Villalba
Max Planck Institute for Tax Law and Public Finance
This paper analyzes whether there is a higher willingness-to-pay when faced with un- certain gains or uncertain losses. In addition, we look at how the restriction on choice, established with different framings, impacts the WTP. We observe that there is no differ- ence in the WTP between gains and losses, but there is a difference in the WTP between different framings of the restriction of choice. Specifically, we see that respondents who are faced with a delegation decision have a smaller WTP than those who only face a decision of choosing between a pair of lotteries. In addition, we find that the WTP is even smaller when the default of a third-party agent choosing is imposed.
Keywords: Agency, Delegation, Decision rights, Gains, Losses

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