1 of 26

ORANGE MARKET

An FTE MobLab Activity

2 of 26

Open the MobLab app on your mobile device

or open a new window and login at

https://game.moblab.com/

​

3 of 26

Game Instructions

Orange Market

MobLab

©2018

4 of 26

Groups of 5 sellers and 5 buyers.�Trade to maximize your profits!

MobLab

©2018

Orange producer,

selling oranges

Hungry consumer, buying oranges

5 of 26

SELLERS

MobLab

©2018

6 of 26

Submit an ASK using the slider, or Sell at Highest Bid

MobLab

©2018

7 of 26

Seller’s Profit = Sale Price – Cost

MobLab

©2018

8 of 26

BUYERS

MobLab

©2018

9 of 26

Submit a BID using the slider, or Buy at Lowest Ask

MobLab

©2018

10 of 26

Buyer’s Profit = Value – Purchase Price

MobLab

©2018

11 of 26

Bids are offers to buy, Asks are offers to sell

MobLab

©2018

Past sales / purchases for entire market

Current BIDS and ASKS

12 of 26

When does a transaction occur?

  • Someone uses or

​

  • A Buyer places a higher than the lowest outstanding Ask (Purchase Price at Lowest Ask)

​

  • A Seller places an lower than the highest outstanding Bid (Sale Price at Highest Bid)

​

MobLab

©2018

Buy at Lowest Ask

Sell at Highest Bid

BID

ASK

13 of 26

What happens when a transaction occurs?

  • Buyers
    • The value for the next orange is lower than the previous orange

​

  • Sellers
    • The cost to supply the next orange is greater than the previous orange

MobLab

©2018

14 of 26

Join the Active Session

Complete the Pre-Game Survey: Orange Market

Pre-Game Survey: Orange Market

Class Name

Class Name

15 of 26

Pre-Game Survey

Orange Market

MobLab

©2018

16 of 26

As a seller, what is your profit if someone accepts your ask of $1.24?

MobLab

©2018

Sale Price – Cost = $1.24 - $ 0.65 = $0.59

$1.24

$0.65

$0.59

17 of 26

As a buyer, what is your profit if you �“Buy at Lowest Ask”?

MobLab

©2018

Value – Purchase Price = $1.38 - $0.87 = $0.51

$1.38

$0.87

$0.51

18 of 26

Game Time!

Orange Market

MobLab

©2018

19 of 26

Post-Game Survey

Orange Market

MobLab

©2018

20 of 26

Debriefing

  • Did anyone choose not to buy or sell an orange in a particular round?
  • Why?
  • How did you decide when to trade?

​

21 of 26

Debriefing

  • Who is the winner in this transaction?

​

​

Orange producer,

selling oranges

Hungry consumer, buying oranges

$1.40?

Deal!

$1.40

22 of 26

Debriefing

  • Who determined the “market price” for oranges?
  • Buyers? Where would they have set the price if they'd had the power to do so?
  • Sellers? Where would they have set the price if they'd had the power to do so?

23 of 26

Debriefing

  • Would you describe this as a competitive market?
  • Who was in competition with whom?
  • Who wins when buyers compete with buyers?
  • Who wins when sellers compete with sellers?

24 of 26

Debriefing

  • What conditions made the market work well?
    • Equal number of buyers and sellers
    • like products for sale
    • equal or full knowledge about the products
    • clear rules concerning what you could/could not do in market

​

​

​

25 of 26

Conclusion

  • Market prices emerge from the interactions of buyers and sellers.
  • Competition among sellers, protects buyers.
  • Competition among buyers, protects sellers.
  • Voluntary trade creates wealth. Both parties are better off.

​

​

26 of 26

And the Winners Are...