Analysis of Experiment

1
Analysis of Experiment

• When values commonly known, person able to set
  terms of trade should capture most of surplus
  (indeed, theoretically, all of it).
• Person who sets terms of trade has the market
  (bargaining) power
• When values privately known
• Market power of seller less because buyers
  knowledge affords him/her some power
• Also risk of inefficient outcome (i.e., no trade)