Economics · Microeconomics

Information Asymmetry — The Used Bicycle Market

A teen-friendly Lemons market: watch a Saturday bicycle market in Plaza Rosales unravel under one-sided information, then design the mechanisms (inspection, warranty, reputation, certification) that bring the good bikes back. Live simulation of Akerlof 1970, Spence 1973, and Stiglitz 1976 in five rounds.

5 rounds MBA & Masters English, Español
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Preview

Who it is for

An intermediate simulation for participants who already know the core concepts of the subject, designed for master's and MBA programmes.

How a session runs

  1. The instructor creates a session from the Eureka dashboard and invites the participants.
  2. Participants play 5 rounds. In each one they submit their decisions and the simulation calculates the results. The first round opens with: Full Information.
  3. The simulation can be run in English, Español.
  4. The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.

Decisions participants make

The decisions participants make during the simulation:

  • Bid for Good bikes (€)
  • Bid for Average bikes (€)
  • Bid for Poor bikes (€)
  • Your bid for an unknown bike (€)
  • Mechanism A — Independent inspection
  • Mechanism B — Two-week return warranty
  • Mechanism C — Public reputation system
  • Mechanism D — Mandatory certification

What participants track

What participants follow on screen as the rounds go by:

  • Last Saturday Outcome

Subjects covered

Designed for courses in Microeconomics.

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