In surveys and experimental work where people are asked to compare gains and losses relative to a reference point,they place a higher value on losses from this reference point than gains.
This explains why WTA measures tend to be higher than WTP.

Question

Quizplus · Accepted Answer

This statement is true. This phenomenon is known as loss aversion and is a well-established finding in behavioral economics. People tend to be more sensitive to losses than gains, particularly when they are framed relative to a reference point. This can lead to higher willingness to accept (WTA) measures compared to willingness to pay (WTP) measures.

In Surveys and Experimental Work Where People Are Asked to Compare