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Market Experiments

Market Experiments. Part 1 Q1. In the case of bureaucrats with true information, What is the average deal price & price range, and how many deals can be made? UESUGI Takamasa. Information. How to Find Average Deal Price.

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Market Experiments

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  1. Market Experiments Part 1 Q1. In the case of bureaucrats with true information, What is the average deal price & price range, and how many deals can be made? UESUGI Takamasa

  2. Information

  3. How to Find Average Deal Price • Average deal price (ADP) is equal to the price where demand meets supply (Equilibrium point) To find ADP, • Derive demand & supply functions • Find the equilibrium point where those two functions intersect

  4. Demand-Supply Curve

  5. Linear Demand-Supply Curve P*=78.18623 Q*=5.222886

  6. Answer • Price Range (according to the graph) = 76,000~80,000 • Average deal price = 78,186.23 • 5 deals can be made = 2 sellers & 2 buyers are going to be excluded from the market

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