{% extends "global/Page.html" %} {% block content %}
Welcome to the Trade Deal Experiment

Instruction Overview

Read all instructions carefully before continuing.

In this experiment, you will be assigned the role of a country that produces two goods: clothes and food. You will choose between several possible production plans that define the total amount of each good you can produce.

Example Production Plans

PlanClothesFood
1100
282
364
446
528
6010

This table is for illustration only. Actual plans in the experiment may differ.

In your country, all production is consumed. Consumption translates into wellbeing according to:

Utility = 5 × minimum{Clothes, Food}

Your utility depends on the smaller of the two goods. For example, if your country consumes 8 units of clothes and 2 of food:

5 × minimum{8, 2} = 5 × 2 = 10

Pre-Negotiation Phase

For the first part of the experiment, you will:


Negotiation Phase

Before choosing your final plan, you will be paired with a partner and have 5 minutes to negotiate a trade deal. Your partner may have different production plans and thus faces different tradeoffs. An agreement will state the amounts of clothes and food the countries will trade, for example:

Country 1 trades 3 units of food for 2 units of clothes with Country 2.

Here is how the negotiation works:

  1. Use the chat box to communicate and negotiate a trade agreement with your partner.
  2. Choose a production plan that determines how much your country produces.
  3. Specify how much you will export and import based on your agreement.
  4. Adjust your choices during negotiation — your utility is calculated automatically.
  5. Once satisfied, submit your final choices.
Do not reveal the details of your production plan to your partner. These are only to be known by you.

Important Constraints

You must choose a production plan that allows you to comply with your trade deal:

  1. You cannot export more than you produce.
  2. Consumption = production − exports + imports.

Your Objective

Choose the consumption of goods that maximises your utility.

Groups that reach a trade deal yielding higher utility for both countries compared to their optimal autarky plans will be awarded a participation point ("Both countries benefited from trade").

Before continuing, please enter your name:

{{ formfield 'player_name' label="" }}
{% endblock %}