Description
Return willingness-to-accept/pay gap and ratio.
Behavioral-economics tasks compare supplied payoffs, reference points, budgets and observed choices. A gap, dominance flag or response fraction illustrates a declared convention without identifying a psychological bias, predicting real choices or selecting a suitable financial action.
Return willingness-to-accept/pay gap and ratio.
When to use this tool
Use Endowment Buy Sell Price Gap when checking the stated experimental payoff, budget, reference or choice convention.
How to use the tool and how it works
- Enter willingnessToPay, willingnessToAccept. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read absoluteGap, acceptPayRatio. Use the output convention below.
Return willingness-to-accept/pay gap and ratio. Require willingnessToPay > 0 and willingnessToAccept >= 0; absoluteGap = accept-pay, acceptPayRatio = accept/pay.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| willingnessToPay | Willingness To Pay | Required. Finite number; strictly above 0. |
| willingnessToAccept | Willingness To Accept | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| absoluteGap | Signed willingnessToAccept-willingnessToPay, despite the output name. | Required. Finite number. |
| acceptPayRatio | Accept Pay Ratio | Required. Finite number. |
{
"input": {
"willingnessToPay": 20,
"willingnessToAccept": 30
},
"output": {
"absoluteGap": 10,
"acceptPayRatio": 1.5
}
}Limitations and assumptions
- AbsoluteGap is signed despite its name; no empirical endowment effect, valuation validity or compensation recommendation is established.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use a well-defined study design and complete data to estimate behavior; assess real financial rights, consequences and uncertainty independently.
References
Similar or alternative tools
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