Results of Experiment 1 

Session 1 (The picture phone market)

Network Externality Factors were as follows

Number of Phones Sold	Network Externality Factor
1-2	1
3-4	2
5-6	3
7-8	4
9-10	5
11-12	6

In Rounds 1 and 2 of Session 1,  the distribution of initial values was as follows:

Initial Value	Number of Buyers
1	2
2	2
3	2
4	2
5	2
6	2

 
In round 1 of Session 1, 6 picture phones were sold.  The Initial Values of the 5 buyers were
6,6,5,4,4, and 1.
In Round 2 of Session 1, 7 people bought picture phones.  
When you work through the graphs for your homework, just do them for the case  of the
18 buyers in Round 1.    (The graphs for the actual distribution in round 2 are much more complicated.)

Problem 9.6 of the homework says that "In Round 2 of Session 1, the price was $11.
We actually did it with a price of $10.  With a  $10 price, there is only one equilibrium.  With an $11
price there would be two equilibria.  You can skip Problem 9.6.

Sessions 2 and 3

I will not ask you to hand in the part of the homework dealing with Sessions 2 and 3.