Instruction Overview
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
| Plan | Clothes | Food |
|---|---|---|
| 1 | 10 | 0 |
| 2 | 8 | 2 |
| 3 | 6 | 4 |
| 4 | 4 | 6 |
| 5 | 2 | 8 |
| 6 | 0 | 10 |
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:
Your utility depends on the smaller of the two goods. For example, if your country consumes 8 units of clothes and 2 of food:
Pre-Negotiation Phase
For the first part of the experiment, you will:
- Review the available production plans for your country.
- Select a plan using the slider — your total utility will update automatically.
- Determine which plan gives you the highest utility without trade (autarky).
- This choice serves as your benchmark before negotiating a trade deal.
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:
Here is how the negotiation works:
- Use the chat box to communicate and negotiate a trade agreement with your partner.
- Choose a production plan that determines how much your country produces.
- Specify how much you will export and import based on your agreement.
- Adjust your choices during negotiation — your utility is calculated automatically.
- Once satisfied, submit your final choices.
Important Constraints
You must choose a production plan that allows you to comply with your trade deal:
- You cannot export more than you produce.
- 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:
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