Friday, 28 December 2012


Computer nerds analyse the UK economy.
Goethe was an early user of the Becker-De Groot-Marshak method for eliciting true valuations. (Hat tip: Alexia Gaudeul. For non-specialists, the BDM method works as follows. You state your bid to receive some object, e.g. a bar of chocolate. The computer then randomly determines a price. If the price is lower than your bid, you pay the price and get the chocolate; otherwise you pay nothing and don't get the chocolate. In these circumstances, the best strategy is to state your true value for the chocolate.)