Economy Game

at Maastricht University

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Question 6 is wrong. The question asks about maintained cars, in this case cars that were not traded were calculated. Dont use this one.
Hey what did you use as x&y values for the regression?
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Hi! Could you tell me ,for Q3,why P=120-Q? How can we get this ?
As far as I know that was given in the task, wasnt it?
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For Q1, How do you find the supply and demand?
Use consumption values and costs. Sort them from lowest to highest and from highest to lowest and plot them without the zeros. This way you will end up with two "lines"
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how did u create the demand and supply curves?
You use the sellers costs and the Consumption values of the buyer. Sort them from lowest to highest (for costs) and from highest to lowest (for cons. values). When you plot it this way, you will see a lot of zeros, you will have to take those out. I hope that helps. There is also a document for this years homework (assignment 1) in which you can look up the solution / the way.
Some of the numbers are wrong I made a mistake by subtracting value minus cost to get the price
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Can you please say how you calculated the fraction of maintained cars in each round?
The amount of cars with dummy quality 1 over the total amount of cars traded
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Task 5: How did you find SS and CS ? I can find only the Welfare ....
You have to add all of the profit made by sellers (1) to get the SS and add all of the profit made by buyers (2) to get the CS.
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For task 2, the profits seems way too high when I try to retrieve them.. Do some people have the same problem? Where do you retrieve profits from?
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How did you compute the quantity produced on task 2?
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Is there any questions that are specific to each person? Or can I just use your answers as they are?
Those are specific are not individual but still specific to each group
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How do I find my market parameters for question 2
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What should I do when there is no slope given?
It should always be given I think
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What did you use for the y range and the x range in the regression analysis?
For y, the whole column "minimum price", and for x the whole 3 columns "Period", "Groupsize" and "Communication"
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Is there a reason you only have an average for 5 firms? The task says for all??
I have averages for 5 competitors and also for duopolies, but that's only because there were only those two types in my dataset. You might have to do it for more
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How do I find the demand curve? :)
The equation was given in the simulation, but you can also find it back because you are given the slope, the MaxQuantity and the MaxPrice. Here the slope is -1, the MaxQuantity is 120 and the MaxPrice is also 120, so the equation must be Q=120 - P
how much was the tax again?
10
thank you!
How do I solve task 17 for Part I? And what is meant with "do they match to the theory?"
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and regarding task 5 how do I find the theoretical values for the surplus?
its the values from task 4
Can someone explain how to calculate the values for assignment 1.4?
Equilibrium price - Costs =Seller's surplus. Then take the sum of it. Value - Eq. Price = Buyer's Surplus. Then take the sum of it. Sum Seller + Sum Buyer = Total
thank you
Regarding assignment 3 I had some issues with the Pivots tables, in tasks 8,9, and 10... I think my graphs are looking kind of weird... Anyone has done them and wouldn't mind posting one or all of them so that I compare? Or else just tell me how you did them based on the pivot tables? Thank you so much!
T8
does anyone have assignment 3 also?
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Then can you explain the general formula that should be used for task 1? (and implicitly task 2)
First I used =Median( Value Bad Min & Value Bad Max) to get 150. ("every value in an interval was equally likely"), then you do the same for =Median(CostBad Min & CostBad Max) to get 250. 250-150 = 100 = Total Welfare. You can do the same for T2 with good to get 500-300 =200
Has anyone done Assignment 3? Having some trouble understanding task4 if anyone has done it it would be of great help :)
Sum of Value Bad - Sum of Value Cost = Total Welfare
How do you use the traded prices to calculate the surpluses at question 5 in assignment 1?
use a pivot table
How to calculate the surpluses for Assignment 1
for the consumers: (max value- eq price)*eq quantity/2 for producers: (eq price- min cost)*quantity/2
anyone an idea how to generate the graph with excel for the first task (Assignment 1)?
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How do you calculate the equilibrium?
Cost of producing = Value -->Price. Then you can create a new column counting from 1 to the end and look up at which number they are meeting. That will be your quantity. (So basically you have 3 columns Value // Price // Quantity and when value and price are equal (Value descending // Price ascending) then you can look at which number it is in the quantity column.
For Betrand I did a mistake, it should be Optimal Price: Profit = (120-1Q)*Q -20Q /// 1st derivative 100-2Q =0 /// Q=50 /// P= 120-50*(-1) = 70
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can you also do assignment 3?
yes
Can someone posts their results for Assignment 1?
Which task was difficult for you?
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how did you get the surpluses?
I used total profit, but the right answer would have been the average of the profit for each round.
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how did you get the average of prices question 7
Take all the data > Pivot table > Period in rows > average Price in rows as values > filter for Treatment number > copy values from Pivot table for each Treatment > make a graph from them
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Are you going to upload your assignment today? :)
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Have you done the one for the second assignment?
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in the regression how do you have 1-448, in the data isn't it only 218 ?
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i mean cells..
Previously I deleted equal cells, because in a group of 5, you would have 5x the same data, in this case I did not do this, you can change it how you like it.
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One Question. How did you find the demand function for task 3? I am just wondering (since it is not in the task but I thought it was there during the tutorial) wasn't it?
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because you have to take data from both subject_3 and subject_4, because you have this dummy variable of communication, which you have to add. For the data from subject_3 it has "0" in the column and for subject_4 data it says "1".
@Victoria DCH
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Perfect as always, but there is one minor remark. In Task 2 you are supposed to "calculate the optimal monopoly price" but you 'only' calculated the optimal quantity.
thanks Jonathan!
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How do you calculate the values for Question 9?