Strategy Method (and payment cards)

Payment cards are a useful device to measure subjects’ preferences for a good and especially their willingness to pay for it. Together with some other similar elicitation methods, payment cards are especially appropriate for both hypothetical and incentive-compatible valuations of a good; a property which has prompted many researchers to use them in studies comparing stated and revealed valuations. The Strategy Method (hereafter SM) is a method based on a similar principle as that of payment cards, but is aimed at eliciting a subject’s full profile of responses to each of the strategies available to the rival(s).