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Using the Becker-DeGroot-Marschak Mechanism to Teach Willingness to Pay and Consumer Surplus

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  • Jens Schubert

    (University of Delaware)

Abstract

The Becker DeGroot Marschak (BDM) mechanism is a widely-used technique to elicit subjects' willingness to pay for ordinary consumer and environmental goods. In this article, I ...

Suggested Citation

  • Jens Schubert, 2023. "Using the Becker-DeGroot-Marschak Mechanism to Teach Willingness to Pay and Consumer Surplus," Journal of Economics Teaching, Journal of Economics Teaching, vol. 8(1), pages 1-11, January.
    • Handle: RePEc:jtc:journl:v:8:y:2023:i:1:p:1-11
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    References listed on IDEAS

    as
    1. Noussair, Charles & Robin, Stephane & Ruffieux, Bernard, 2004. "Revealing consumers' willingness-to-pay: A comparison of the BDM mechanism and the Vickrey auction," Journal of Economic Psychology, Elsevier, vol. 25(6), pages 725-741, December.
    2. Matthew C. Rousu & Jay R. Corrigan & David Harris & Jill K. Hayter & Scott Houser & Becky A. Lafrancois & Olugbenga Onafowora & Gregory Colson & Adam Hoffer, 2015. "Do Monetary Incentives Matter in Classroom Experiments? Effects on Course Performance," The Journal of Economic Education, Taylor & Francis Journals, vol. 46(4), pages 341-349, October.
    3. Bohm, Peter & Linden, Johan & Sonnegard, Joakim, 1997. "Eliciting Reservation Prices: Becker-DeGroot-Marschak Mechanisms vs. Markets," Economic Journal, Royal Economic Society, vol. 107(443), pages 1079-1089, July.
    4. Mark Dickie, 2006. "Do Classroom Experiments Increase Learning in Introductory Microeconomics?," The Journal of Economic Education, Taylor & Francis Journals, vol. 37(3), pages 267-288, July.
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    More about this item

    Keywords

    Willingness to Pay; Consumer Surplus;

    JEL classification:

    • A21 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Pre-college
    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate

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