Using the online questionnaire tool Qualtrics I ask the students randomly one of two versions of the following question at the start of the lecture:
Imagine you have a bag of winegums (with approx. 100 winegums) and your friend has a Twix. How many winegums would you be willing to give to your friend to get one of his/her Twix bars in return?or
Imagine you have a Twix and your friend has a bag of winegums (with approx. 100 winegums). How many winegums would your friend have to give to you for you to want to give him/her one of your Twix bars in return?So what I'm doing is asking for the Willingness to Pay (WTP) and Willingness to Accept (WTA) of one Twix bar expressed in number winegums. Over the course of the lecture I explain about the marginal rate of substitution and how theoretically we would expect the WTA and the WTP of a particular good, for instance Twixes, in terms of the other good, say winegums, to be pretty much the same.