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

The Most Magical Way to Teach: Disney Music In The Classroom (Jaeger & Wooten)
January 1, 2022
Teaching Monetary Policy with Ample Reserves (Ihrig & Wolla)
March 22, 2022

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 show an application of the BDM mechanism to teach the concepts of willingness to pay and consumer surplus in introductory economics classes. The procedure is easy to implement, even in courses with large enrollments, and it actively engages all students. Evidence suggests this technique improves learning outcomes.


Jens Schubert

Download


Schubert, J. (2023). Using the Becker-DeGroot-Marschak Mechanism to Teach Willingness to Pay and Consumer Surplus. Journal of Economics Teaching, 8(1), 1-11. DOI: 10.58311/jeconteach/7321c9244cc478b8a14e9f5b5350c9f2a08a7ed1