Experiment 11: Adverse Selection

The experiment was conducted on 4 November, 1998, at 
Carnegie Mellon University.

First, thanks to everyone who participated.  I know the lack
of power and sitting in the hallway was a drag, but I really do
appreciate all 58 of you who persevered.

Important Notes:

Use the data from the last round of each session for the Lab Report.

Please add the following question to the bottom of page 323:

In Session 3, the total amount of net profit earned by used-car owners 
who sold their cars on the market was _____, the total amount earned 
by dealers was ____, and the total amount earned by both was _______.  
In Session 4, the total amount of net profit earned by used-car owners 
who sold their cars on the market was _____, the total amount earned 
by dealers was ____, and the total amount earned by both was _______.


Please add the following table to the bottom of page 319, as the 
information is needed for some of the questions.

Table L11.0: Distribution of Car Type and Dealers by Session:
                      	Session 2	Session 3	Session 4
Number Good Car Owners:	9		6		6
Number Lemon Owners:	9		12		12
Number of Dealers:	6		6		6


In Session 2 there were 9 good used-cars and 9 lemons
purchased by dealers.

Data for Table L11.1
Prices Paid by Dealers--Session 2:
Dealer	Prices		
ID	Paid
1       1700	1700	1750	1750	1750	1750	1750 	1750	1750	1750
2  	400
3       1700
4	1700	1800	1700
5 	1700	1750
6	1700


In Session 3 there were 2 good used-cars and
12 lemons purchased by dealers.

Data for Table L11.3
Prices Paid by Dealers--Session 3:
Dealer	Prices		
ID	Paid
1       500 	500	500		
2	1675
3	500	500
4	495	500
5	2000	500
6	450	450	480	490

Session 4 

Data for Table L11.5
Prices Paid by Dealers--Session 4:
(asterisk by price indicates good car showed, double
asterisk by price indicates bad car showed, no asterick
by price indicates no card shown)
Dealer	Prices		
ID	Paid
1       2500*   2500*   450** 
2       3000* 	500**	500**
3       2500*	2500*	475**	475**
4       500**	500**	500**	500**
5       3000*	490
6	450** 	480	
 


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