Price discrimination and resale: a classroom experiment

F

IRST 

G

AME

 

First, the seller announces one price at which the buyers in that world may purchase. Then, each 

buyer wishing to purchase at that price should raise his/her hand and record the purchase price and 

his/her earnings at that price (price - card number). If you are a buyer, and the quoted price is above 

your card number you MUST purchase the unit. 

The seller should count and record the number of buyers purchasing at the quoted price, and then 

calculate its profits. This is done for a number of rounds.