Price Discovery And Auctions Activity | Instructions
You are about to participate in an economic experiment. The market structure used in this experiment is known as a “double-oral auction.” This means that both BUYERS and SELLERS orally communicate their desires to the market (the auctioneer at the front of the room) and this information is known to all participants. Because every market has two sides, the class will be divided into two groups, BUYERS and SELLERS. Individual BUYERS will attempt to buy an hour of labor from individual SELLERS. Everyone in the class will receive a card and a sheet that is marked BUYER or SELLER. The sheet contains information about your individual economic limits and desires. This is your private information; do not share it with anyone else or let anyone else see it. You will use the information on the card to make exchanges. Your profit is your own. As a BUYER or a SELLER you should try to make as much profit as possible. How you use the information on the card to make profit is explained below:
