A study on preference reversal on WTA, WTP and Choice under the third generation prospect theory

The value of subjective attitude parameters in and abroad were introduced in this paper on the basis of the third generation prospect theory, aiming to make a further study on the preference reversal between willingness to accept, willingness to pay and choice. Results suggest that people's significant reversal activities are relatively constant, and there are standard preference reversal in the group of WTA/WTP and the group of WTA/Choice, and non-standard preference reversal in the group of WTP/Choice. Besides, Chinese are more risk-seeking in gain and more risk-aversion in loss than Americans while Americans are more likely to present preference reversal compared to Chinese.