Question : Suppose that you a buyer in the first experiment variation.
Suppose that you are a buyer in the first experiment variation.
You have a buyer value of $5 in each trading round of this variation. All trades taking place are at prices above $10. You have not bought a book in any of the rounds. Time is about to run out in what you are told is the last round of this variation.
What should you conclude?
A. It's better to trade than not to trade, so you should submit a bid to buy at a price high enough to get a trade, even if it is above $10.
B. There must be a problem with the software. The experiment is designed to let everybody trade and earn a gain.
C. The experiment is like real life--sometimes you are unlucky and can't make a gain no matter how hard you try. New buyer values and seller costs are assigned only in a new variation, not in the various rounds that take place within a given variation.
D. There is a different problem with the software. It is true that the experiment is designed so that students sometimes get buyer values or seller costs that don't let them trade. However, everyone should get a new buyer value or seller cost at the beginning of each round. You should not have been stuck with the same buyer value in the different rounds.