Econ 101 Online Auction Example

WELCOME TO THE ONLINE AUCTION SIMULATION

Written by Akshay Murthy (December 2001)

This program is intended to aid in the understanding of the basic supply and demand model as that model applies to auctions of a single, standard, commodity. The program is very similar to the game played in class and the basic rules are the same.

Instructions

The program begins using randomly generated benefit/cost information. There are a random number of other computer players in this game. You may choose to play using the same data used in the classroom demonstration by pressing the button marked "Use Classroom Data" in the "Menu" window.
You will be assigned an identity, either buyer or seller. Your marginal cost or benefit information will appear in the window titled either "Marginal Cost" or "Marginal Benefit."
If you are a seller, you may enter an ask, which is between the existing bid and ask and is not less than your marginal cost, in top field of the auction window. Press "Submit" after entering a bid or press "Pass" if you do not wish to bid.
If you are a buyer, you may enter a bid, which is between the existing bid and ask and is not greater than your marginal benefit, in top field of the auction window. Press "Submit" after entering a bid or press "Pass" if you do not wish to bid.
The window titled "Purchases" will detail all of the trades completed in this auction.
Continue bidding/asking/passing until the auction ends.
When the auction is complete, the program will create 2 new windows. The first window displays the complete order book for this auction. The second window will show you characteristics of the auction, including efficiency and equilibrium price and quantity.
You may play again using random data by pressing the button marked "New Game" in the "Menu" window. Alternatively, you may play a game using the same data used in the classroom demonstration by pressing the button marked "Use Classroom Data."

Last modified: March 6, 2002 3:30 PM (auction/index.html)