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 Sellers’ Purchase Costs (thousands) 1234567 56606471768290 Buyers’ Price Limits (MWTP) (thousands) 1234567 105969285807368

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 = 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