Econ501aExpRules

Econ501aExpRules - is cancelled, and we go to step 1. For...

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Market Experiment Rules (Double Oral Auction) 1. A seller makes an o f er to sell at a stated price (I will sell for $100), or a buyer makes an o f er to buy at a stated price (I will buy for $5). 2. Once an o f er is on the table, someone on the other side of the market can accept. For example, if a seller has o f ered to sell for $100, a buyer can say, “I will buy for $100.” 3. If an o f er is accepted, the f rst person to accept transacts with the person making the o f er. The seller incurs her cost but receives the agreed upon price. The buyer receives his “value” but pays the agreed upon price. Wethensta rtoverw ithstep1 .
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Unformatted text preview: is cancelled, and we go to step 1. For example, if no one wants to pay $100, a new o f er can be made. However, a new o f er to sell should be below $100. If previously no one wanted to sell for $5, a new o f er to buy should be above $5. (It is a waste of time not to keep things moving towards a transaction.) When a transaction occurs, please mark the price on your card. At most one transaction per person during the whole game. Buyers payo f is: value transactions price Sellers payo f is: transactions price cost. hint: Dont pay more than your value, and dont sell for less than your cost....
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This note was uploaded on 07/17/2008 for the course ECON 501.02 taught by Professor Yang during the Spring '08 term at Ohio State.

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Econ501aExpRules - is cancelled, and we go to step 1. For...

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