Trading in a Pit Market-Discussion.

here is one of my college comment:

At the beginning, the video discussed the market equilibrium and the concept of perfect competitive market.

then it went through the following statement ” Government intervention is undesirable, let the things be determined by the market forces” and how government should not intervene in the market matters.

In 1996, Chales A. Holt posted a paper describes a study includes a muck game of a market. The study showed a selected participants divided equally between buyers and sellers. Also there is one participant who is a market manager to manage and record all the transactions occurs in the market.

The Importance of this game is to show that even if the the market price can be obtained even if the market has less number of buyers and sellers.

The rolls of the game is :

1- Sellers cannot sell below the price.

2- Buyers cannot buy below the value and the quantity.

The game started by the interactions between the buyers and the sellers to conduct the transactions. As long this process repeated, we discovered that the members are mature enough to determine the how to get the better deal.

In conclusion, even if the market has less numbers of buyers and sellers the same price could be established.