The practical problems associated with accurately measuring the value of a public good in an applied setting are considered. We compare and contrast the values obtained from hypothetical elicitation procedures with those obtained in a marketplace. When hypothetical measurements are elicited in the field, buying-selling discrepancies similar to those predicted by psychological models of behavior are observed. These discrepancies decrease greatly when a market with appropriate incentives for accurate relevation is used to elicit the value for the public good.

Don L. Coursey, John L. Hovis, William D. Schulze; The Disparity Between Willingness to Accept and Willingness to Pay Measures of Value*, The Quarterly Jou