!URL
http://en.wikipedia.org/wiki/Becker%E2%80%93DeGroot%E2%80%93Marschak_method

!Description
The Becker–DeGroot–Marschak method (BDM), named after Gordon M. Becker, Morris H. DeGroot and Jacob Marschak for the 1964 Behavioral Science paper, "Measuring Utility by a Single-Response Sequential Method" is an incentive-compatible procedure used in experimental economics to measure willingness to pay (WTP).[1]

Today there are several variations of the BDM methodology. In one common way, the subject formulates a bid. The bid is compared to a price determined by a random number generator. If the subject's bid is greater than the price, he or she pays the price and receives the item being auctioned. If the subject's bid is lower than the price, he or she pays nothing and receives nothing.
bag
mbi_public
created
Mon, 05 Dec 2011 10:50:46 GMT
creator
dirkjan
modified
Mon, 05 Dec 2011 10:50:46 GMT
modifier
dirkjan
tags
marketing
pricing
bookmark
mbi
creator
dirkjan