Experiments

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There is a relatively simple approach to dealing with the problem of pricing the iPad which was discussed in Phrasing the Question. The solution is to conduct an experiment, showing different people the iPad at different prices and asking them if they will or will not buy the product. For example, some people could be shown a price of $500, some $750, some $1,000 and so on. As the respondent cannot know that the experiment is designed to understand the effect of price, they have no way of providing misleading answers in order to gain a benefit and thus the question becomes incentive compatible.

Common types of experiments used in market research