New Source Performance Standards Game
Please examine the specific information sheet that is attached to the
instructions. Your identification number is written on the top-right part of the
page. This sheet contains specific information about your production costs and
your market; this information is private, please do not reveal this information
to anyone. Others may or may not have the same production costs as you have.
Next, please have a look at the decision sheet. Going from left to right, you
will see columns for the "Period", "Market", "Your Price", "Your Quantity",
"Quantity Sold" and "Your Earnings."
- At the start of period 1 you select and record the market you would like
to enter in period 1 (recall that sellers 1 and 2 have been selected to be in
markets I and II for all periods). We do this by allowing sellers to randomly
choose markets first, second, third and fourth. We will write your market
decisions so that everyone can see them.
- After all sellers have selected their markets, each of you must select a
price and maximum quantity decision and write these decisions in the
appropriate columns of your decision sheet.
- After you have made and recorded your decisions, we will collect the
decision sheets and write the prices for all sellers so that everyone can see
- Next we will use the simulated demand to determine the quantity actually
sold by each seller in each market.
- When all purchases are finished, we will write the quantity you sold on
your decision sheet and return it to you so that you can calculate your
earnings for the period, as described above.
This process will be repeated a number of periods.
Please read the specific information sheet that is attached to the
instructions. Please be careful not to reveal any information that appears on
your specific information sheet.