An experiment from the book Experiments with Economic Principles by Theodore C. Bergstrom, Marcus Giamattei, Humberto Llavador and John H. Miller
The Apple Market: A simple trading-pit experiment
Material for Students
Photo by Kotagauni Srinivas on Unsplash
It is a sunny Saturday morning at the Farmers’ Apple Market. You and your classmates have come to the Market to buy and sell apples. Demanders value apples according to their Buyer Value. Suppliers must pay their Seller Cost if they want to sell a bushel of apples. In any single round of trading, buyers cannot buy and sellers cannot sell more than one bushel of apples, nor can anyone buy or sell fractions of a bushel of apples.