monopoly market: patented fun!

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monopoly market: patented fun! overview one role: the market monopolist each round: choose how many pallets of pharmaceuticals to ship this affects the market price of your product Market demand is known. Marginal revenue and marginal cost information are provided. monopoly market www.moblab.com 9A Playground for Decisions 9

start screen current market condition 9 monopoly market www.moblab.com 9A Playground for Decisions 9

your game screen current number of pallets. increase pallets. 9 monopoly market www.moblab.com 9A Playground for Decisions 9

your game screen market price at current number of pallets 9 monopoly market www.moblab.com 9A Playground for Decisions 9

your game screen market price at new number of pallets 9 monopoly market www.moblab.com 9A Playground for Decisions 9

your game screen to remove pallet, click trash icon 9 monopoly market www.moblab.com 9A Playground for Decisions 9

your game screen cost and revenue information. show graph. 9 monopoly market www.moblab.com 9A Playground for Decisions 9

market graph click button to go back to game 9 monopoly market www.moblab.com 9A Playground for Decisions 9

your game screen click submit to finalize shipment 9 monopoly market www.moblab.com 9A Playground for Decisions 9

profit screen 9 monopoly market www.moblab.com 9A Playground for Decisions 9

your game screen view previous rounds 9 monopoly market www.moblab.com 9A Playground for Decisions 9

payoffs an example profit = quantity x (price - cost) Suppose inverse market demand is P = 8 – 0.25Q Marginal cost is constant at $2 per pallet Suppose 4 units are produced Market price is P = 8 - .25(4) profit = quantity x (price - cost) monopoly market www.moblab.com 9A Playground for Decisions 9

payoffs happy playing! an example profit = quantity x (price - cost) Suppose inverse market demand is P = 8 – 0.25Q Marginal cost is constant at $2 per pallet Suppose 4 units are produced Market price is $7 profit = quantity x (price - cost) $20 4 ($7 $2) monopoly market www.moblab.com 9A Playground for Decisions 9