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Becker–DeGroot–Marschak Method
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). 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, they pay the price and receives the item being auctioned. If the subject's bid is lower than the price, they pay nothing and receive nothing. In another common method, the subject is presented with a series of sequentially increasing or random-order monetary amounts. They must decide if they would prefer to have that amount of money or the item at hand. Then, one of these numbers is chosen either specifically by the experimenter or is random ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Morris H
Morris may refer to: Places Australia * St Morris, South Australia, place in South Australia Canada * Morris Township, Ontario, now part of the municipality of Morris-Turnberry * Rural Municipality of Morris, Manitoba ** Morris, Manitoba, a town mostly surrounded by the municipality * Morris (electoral district), Manitoba (defunct) * Rural Municipality of Morris No. 312, Saskatchewan United States ;Communities * Morris, Alabama, a town * Morris, Connecticut, a town * Morris, Georgia, an unincorporated community * Morris, Illinois, a city * Morris, Indiana, an unincorporated community * Morris, Minnesota, a city * Morristown, New Jersey, a town * Morris (town), New York ** Morris (village), New York * Morris, Oklahoma, a city * Morris, Pennsylvania, an unincorporated community * Morris, West Virginia, an unincorporated community * Morris, Kanawha County, West Virginia, a ghost town * Morris, Wisconsin, a town * Morris Township (other) ;Counties and o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jacob Marschak
Jacob Marschak (23 July 1898 – 27 July 1977) was an American economist. Life Born in a Jewish family of Kyiv, Jacob Marschak (until 1933 Jakob) was the son of a jeweler. During his studies he joined the social democratic Menshevik Party, becoming a member of the Menshevik International Caucus. In 1918 he was the labor minister in the Terek Soviet Republic. In 1919 he emigrated to Germany, where he studied at the University of Berlin and the University of Heidelberg. From 1922 to 1926 he was a journalist, and in 1928 he joined the new Kiel '' Institut für Weltwirtschaft''. With the gathering Nazi storm, he emigrated to England, where he went to Oxford to teach at the Oxford Institute of Statistics, which was funded by the Rockefeller Foundation, allowing him to emigrate in 1939 to the United States. After teaching at the New School for Social Research, in 1943 he went to University of Chicago, where he led the Cowles Commission. He followed the commission's move to Yale ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Incentive Compatibility
A mechanism is called incentive-compatible (IC) if every participant can achieve the best outcome to themselves just by acting according to their true preferences. There are several different degrees of incentive-compatibility: * The stronger degree is dominant-strategy incentive-compatibility (DSIC). It means that truth-telling is a weakly-dominant strategy, i.e. you fare best or at least not worse by being truthful, regardless of what the others do. In a DSIC mechanism, strategic considerations cannot help any agent achieve better outcomes than the truth; hence, such mechanisms are also called strategyproof or truthful. (See Strategyproofness) * A weaker degree is Bayesian-Nash incentive-compatibility (BNIC). It means that there is a Bayesian Nash equilibrium in which all participants reveal their true preferences. I.e, ''if'' all the others act truthfully, ''then'' it is also best or at least not worse for you to be truthful. Every DSIC mechanism is also BNIC, but a BNIC mech ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Experimental Economics
Experimental economics is the application of experimental methods to study economic questions. Data collected in experiments are used to estimate effect size, test the validity of economic theories, and illuminate market mechanisms. Economic experiments usually use cash to motivate subjects, in order to mimic real-world incentives. Experiments are used to help understand how and why markets and other exchange systems function as they do. Experimental economics have also expanded to understand institutions and the law (experimental law and economics). A fundamental aspect of the subject is design of experiments. Experiments may be conducted in the field or in laboratory settings, whether of individual or group behavior. Variants of the subject outside such formal confines include natural and quasi-natural experiments. Experimental topics One can loosely classify economic experiments using the following topics: * Markets * Games * Evolutionary game theory * Decision making * Barg ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Willingness To Pay
In behavioral economics, willingness to pay (WTP) is the maximum price at or below which a consumer will definitely buy one unit of a product.Varian, Hal R. (1992), Microeconomic Analysis, Vol. 3. New York: W.W. Norton. This corresponds to the standard economic view of a consumer reservation price. Some researchers, however, conceptualize WTP as a range. According to the constructive preference view, consumer willingness to pay is a context-sensitive construct; that is, a consumer's WTP for a product depends on the concrete decision context. For example, consumers tend to be willing to pay more for a soft drink in a luxury hotel resort in comparison to a beach bar or a local retail store. See also * Cost-benefit analysis * Welfare economics Welfare economics is a branch of economics that uses microeconomic techniques to evaluate well-being (welfare) at the aggregate (economy-wide) level. Attempting to apply the principles of welfare economics gives rise to the field of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Vickrey Auction
A Vickrey auction or sealed-bid second-price auction (SBSPA) is a type of sealed-bid auction. Bidders submit written bids without knowing the bid of the other people in the auction. The highest bidder wins but the price paid is the second-highest bid. This type of auction is strategically similar to an English auction and gives bidders an incentive to bid their true value. The auction was first described academically by Columbia University professor William Vickrey in 1961 though it had been used by stamp collectors since 1893. In 1797 Johann Wolfgang von Goethe sold a manuscript using a sealed-bid, second-price auction. Vickrey's original paper mainly considered auctions where only a single, indivisible good is being sold. The terms ''Vickrey auction'' and ''second-price sealed-bid auction'' are, in this case only, equivalent and used interchangeably. In the case of multiple identical goods, the bidders submit inverse demand curves and pay the opportunity cost. Vickrey auctions ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Johann Wolfgang Von Goethe
Johann Wolfgang von Goethe (28 August 1749 – 22 March 1832) was a German poet, playwright, novelist, scientist, statesman, theatre director, and critic. His works include plays, poetry, literature, and aesthetic criticism, as well as treatises on botany, anatomy, and colour. He is widely regarded as the greatest and most influential writer in the German language, his work having a profound and wide-ranging influence on Western literary, political, and philosophical thought from the late 18th century to the present day.. Goethe took up residence in Weimar in November 1775 following the success of his first novel, ''The Sorrows of Young Werther'' (1774). He was ennobled by the Duke of Saxe-Weimar, Karl August, in 1782. Goethe was an early participant in the ''Sturm und Drang'' literary movement. During his first ten years in Weimar, Goethe became a member of the Duke's privy council (1776–1785), sat on the war and highway commissions, oversaw the reopening of silver min ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Incentive Compatibility
A mechanism is called incentive-compatible (IC) if every participant can achieve the best outcome to themselves just by acting according to their true preferences. There are several different degrees of incentive-compatibility: * The stronger degree is dominant-strategy incentive-compatibility (DSIC). It means that truth-telling is a weakly-dominant strategy, i.e. you fare best or at least not worse by being truthful, regardless of what the others do. In a DSIC mechanism, strategic considerations cannot help any agent achieve better outcomes than the truth; hence, such mechanisms are also called strategyproof or truthful. (See Strategyproofness) * A weaker degree is Bayesian-Nash incentive-compatibility (BNIC). It means that there is a Bayesian Nash equilibrium in which all participants reveal their true preferences. I.e, ''if'' all the others act truthfully, ''then'' it is also best or at least not worse for you to be truthful. Every DSIC mechanism is also BNIC, but a BNIC mech ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
