Price discrimination and resale: a classroom experiment

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Now we are going to set up a market in which some people will be Mexican buyers of 

pharmaceuticals, and others will be US buyers.  Buyers with red cards are residents of Mexico, and 

buyers with blue cards are residents of the US.  The game proceeds as before, except that now the 

seller announces two prices (one for each nation) and Mexican buyers will be given the opportunity to 

purchase first.  After Mexican buyers have made their purchases US buyers are given the opportunity 

to raise their hands and purchase. Buyers and sellers will then record their earnings.  Again, this is 

played for a few rounds. NOTE: Sellers’ should record in the bottom table of their record sheets.  If 

you are a buyer, and the quoted price is above your card number you MUST purchase the unit.