Trade

1

• Trade
• Incentive

2
Discussion

• Why do people trade?

3
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?

4
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.

5
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.

6
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

7
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. ?

8
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!

9
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.

10
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!

11
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.

12
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!

13
Rules of the Third Round

• You can trade with anyone of the class.
• The time limit is 1 minute.

14
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!

15
Discussion

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

16
Discussion

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

17
Discussion

• Was everyone happy with their trades?
• Were you unhappy due to the following?
• little to trade
• couldnt find what they wanted
• traded and then realized they missed a better
  trade

18
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.

19
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.

20
Comparison

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