In session 1 the five sellers meet in secret to set an output quota for each firm. Each seller is given blackboard space on which to post a price. The price cannot be changed during a trading period. Buyers are then allowed to 'shop' for the best price. Sellers cannot sell tickets beyond their quota.
Sellers can also change their posted price during a given trading period.
Session 3 is similar to session 1 except that it introduces the possibility of price discrimination among students and non-students. Session 4 maintains the enforcement of cartel quotas and price discrimination but allows the resale of tickets among traders. Bergstrom, Theodore and John H. Miller. Experiments with Economic Principles . All students are buyers of restaurant meals and also have the opportunity to be a seller of restaurant meals.