Here are the results from Session 1 of
the Experiment (the picture phones)
In the class, the distribution of initial values was as follows.
Four people had initial value 1.
Four people had initial value 2.
Four people had initial value 3.
Three people had initial value 4.
Three people had initial value 5.
Three people had initial value 6.
The Network externality factors were
as follows.
If the total number of phones sold was in the range 1-3, the network
externality factor was 1.
If the total number of phones sold was in the range 4-6, the
network externality factor was 2.
If the total number of phones sold was in the range 7-9, the network
externality factor was 3.
If the total number of phones sold was in the range 10-12, the network
externality factor was 4.
If the total number of phones sold was in the range 13-15, the network
externality factor was 5.
If the total number of phones sold was 16 or larger, the network
externality factor was 6.
In Round 1, the price was $15 and no phones were sold.
In Round 2, the price was $11 and 17 phones were sold. All of the
people with initial values of 2 or higher bought phones.
We did not conduct rounds 3 or 4.