All participants in your group are in the role of a producer, including yourself.
You produce a good. The demand y for your good determines how much you produce. The demand y depends on two factors:
1. The factor ω is given. The higher it is, the MORE demand there is for your good.
2. You determine the price p . The higher you set it, the LESS demand there is for your good.
The demand (and therefore your production) is determined by: y = ω - p.
You will find out the value of ω on your device.
An average price P is formed from your price p and the prices of all other producers in your group. The average price is updated every round. P determines the unit costs of each produced good, which amount to P – 10. Therefore, the total costs of your production are y * (P − 10).
Your profit is calculated as: Production * Profit per unit.
It is represented by a rectangle in the graph. The experiment consists of
{{ C.NUM_ROUNDS }} rounds, during which your profits accumulate. At the end, you receive your earnings as the final payment.
Note: You achieve a high profit when production and profit per unit do not differ significantly.