RT Journal Article SR Electronic T1 WTA-WTP Disparity: The Role of Perceived Realism of the Valuation Setting JF Land Economics JO Land Econ FD University of Wisconsin Press SP 196 OP 206 DO 10.3368/wple.97.1.030419-0033R1 VO 97 IS 1 A1 Manuel Frondel A1 Stephan Sommer A1 Lukas Tomberg YR 2021 UL http://le.uwpress.org/content/97/1/196.abstract AB Based on a survey of more than 5,000 German households and a single-binary-choice experiment in which we randomly split the respondents into two groups, this article explores both households’ willingness to pay (WTP) for power supply security and their willingness to accept (WTA) compensation for a reduced security level. In accordance with numerous empirical studies, we find that the mean WTA value substantially exceeds the mean WTP value in our empirical example by a factor of 3.56. Yet, the WTA-WTP ratio decreases to 2.35 if respondents believe that the hypothetical valuation setting is likely to become true.