Unformatted text preview: must negotiate with a seller. 7. A seller and a buyer who agree upon a trading price will be considered to have traded. They must turn in (face down) their cards and allow the experimenter to record the details of the transaction. 8. The two participants return to their seats and fill in the details of the transaction on their record sheet. 9. Buyer profits are their resale value minus the transaction price. Seller profits are the difference between the transaction price and their cost. 10. The agreed price from each transaction is written on the blackboard by one of the experimenters. 11. A participant who does not reach an agreement by the end of the round returns his card to one of the experimenters. His profit from that round is zero. 12. At the beginning of each round the experimenter shuffles all of the cards and distributes them randomly to the participants....
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This note was uploaded on 02/20/2012 for the course ECON 445 taught by Professor Staff during the Fall '08 term at Texas A&M.
- Fall '08