MobLab
Instructions
Aa

# A Market for Apples

## How to Play

• Consumers: In each round, you can buy a bushel of apples. Get out of your seat and look for a producer willing to sell at a price you both agree upon.
• Producers: In each round, you can sell a bushel of apples. Get out of your seat and look for a consumer willing to buy at a price you both agree upon.
• An agreed-upon transaction must be recorded
• One of you selects the price and presses Prepare Transaction
• She then chooses the transaction partner from the list
• The transaction partner receives the transaction on his screen and presses Accept

## Payoff Computation

• Consumers: Your bushel value is displayed on your screen. If you transact:
• payoff = bushel value - price you pay
• Producers: Your bushel cost is displayed on your screen. If you transact:
• payoff = price you receive - bushel cost
• If you do not transact, your payoff for the round is zero
• Remember: Zero is larger than a negative number!

## Example

• Transaction price = \$1.08
• Value to consumer = \$1.32; Cost to producer = \$0.74
• Consumer value price = payoff
\$1.32 \$1.08 = \$0.24
Producer price cost = payoff
\$1.08 \$0.74 = \$0.34