Trade Incentive

Discussion:  Why do people trade?

Discussion:  Imagine that you walk into a music store, pick out the latest CD by your favorite artist and pay the owner $100.  Who gains?  Who loses in this situation?

Answer For Reference:  Both people gain in the trade.  You give up something of lesser value, $100, to get something of more value, the CD.  The owner gives up something of lesser value, the CD, to get something of more value, $100.  Both you and owner end up with something of more value to yourselves.

Rules of the Game:  Please group yourself into group of 10.  A color will be assigned to each group.  Member in the same group will be given their group color stickers/dots for identification.

Rules of the Game:  Each of you will be given a paper bag according to the color dots.  Students with the same colored dots should form groups in the four corners around the room

Rules of the Game:  Open the bag and look at the object WITHOUT removing it from the bag or showing to anyone else.  Rate your initial satisfaction with the object in your bag. 。

Initial Satisfaction Level:  Raise your hand if your satisfaction level is 5!  Raise your hand if your satisfaction level is 4!  Raise your hand if your satisfaction level is 3!  Raise your hand if your satisfaction level is 2!  Raise your hand if your satisfaction level is 1!

Rules of the First Round:  You have 1 minute to trade your item within your groups.  You can show the item in your bag to others while trading.  You can trade more than once within the time allowed.

After the First Round…  Please rate your satisfaction level with the items you have again.  Raise your hand if your satisfaction level is 5!  Raise your hand if your satisfaction level is 4!  Raise your hand if your satisfaction level is 3!  Raise your hand if your satisfaction level is 2!  Raise your hand if your satisfaction level is 1!

Rules of the Second Round  Two groups will be combined into one in the round.  You will have 1 minute to trade freely within two groups.

After the Second Round…  Please rate your satisfaction level with the items you have again.  Raise your hand if your satisfaction level is 5!  Raise your hand if your satisfaction level is 4!  Raise your hand if your satisfaction level is 3!  Raise your hand if your satisfaction level is 2!  Raise your hand if your satisfaction level is 1!

Rules of the Third Round  You can trade with anyone of the class.  The time limit is 1 minute.

After the Third Round…  Please rate your satisfaction level with the items you have again.  Raise your hand if your satisfaction level is 5!  Raise your hand if your satisfaction level is 4!  Raise your hand if your satisfaction level is 3!  Raise your hand if your satisfaction level is 2!  Raise your hand if your satisfaction level is 1!

Discussion  How many people made trades?  What you have traded?  Why you make trade?

Discussion  Did anyone trade more than once in the experiment?  Why?  Did anyone not trade?  Why?

Discussion  Was everyone happy with their trades?  Were you unhappy due to the following?  little to trade  couldn’t find what they wanted  traded and then realized they missed a better trade

Discussion  Why is there a change in satisfaction from round to round?  As the number of potential trading partners increased, more people were able to find and trade for something they liked better. Thus, the total level of satisfaction increased as the size of the trading group increased.

Discussion  Why do people trade?  People trade to get something of more value by giving up something of less value.  Both parties expect to gain.

Comparison  Did the trading behavior confirm or contradict the hypotheses we listed at the beginning of the activity?