The first image is of the software, courtesy of Chapman University. (My colleague Kyle Hampton and I each previously separately learned the hard way that in China you don't try to run an experiment over the internet). The next image, and video if you can see it, is from JUFE. The next image and video are from NENU. Another general point is that you want two very sharp and capable auctioneers, in this case the students Suna (JUFE) and Sandra (NENU). There are lots of interesting cultural differences. One is that Chinese students are very hard working, educated, and good at finding the right answer, but in this type of experiment there is no "right" answer, you just have to throw out your best offer and trade. As per Adam Smith's "truck and barter" principles. We paid them real money, by the way, our own money, not a huge amaount, but very unprecedented even unthinkable here ... They could scarcely believe it, we put the RMB down upfront to show we were not joking.
Now you might think that this is just about demonstrating equilibrium, consumer surplus, supply and demand and so on. Sure, and we talked about market prices being data plus incentive and all the usual good stuff. But also, how Adam Smith's natural propensity to truck and barter is essential to getting the students through the messiness of translation issues, unfamiliarity with the experiment, and higher degree of chaos when students are not in a familiar classroom, with a familiar instructor, doing a familiar lesson. So the chaos is a GOOD thing. Not a bad thing. Also we showed a link to the original Vernon Smith Journal of Political Economy article and how it started out as a classroom experiment. There's a bit of history of economics bundled in.
So it is not just a cute classroom exercise.
Now you might think that this is just about demonstrating equilibrium, consumer surplus, supply and demand and so on. Sure, and we talked about market prices being data plus incentive and all the usual good stuff. But also, how Adam Smith's natural propensity to truck and barter is essential to getting the students through the messiness of translation issues, unfamiliarity with the experiment, and higher degree of chaos when students are not in a familiar classroom, with a familiar instructor, doing a familiar lesson. So the chaos is a GOOD thing. Not a bad thing. Also we showed a link to the original Vernon Smith Journal of Political Economy article and how it started out as a classroom experiment. There's a bit of history of economics bundled in.
So it is not just a cute classroom exercise.