The Berry Vault
Use reservation values and market prices to discuss the gains from exchange.
Open activityAct IV · The Play Begins · Module 10
Fair Play
Efficiency, price controls, and taxes
63 slides · Hubbard & O'Brien, chapter 4.
The story
Where this fits in Marginal Falls
The town has a market price, but who gains from exchange? The Berry Vault introduces reservation values and surplus. Price controls and taxes then show how policies can change the distribution of gains and the number of mutually beneficial trades.
A question to take into class
How can a policy intended to help one group change both who gains and how much total surplus the town creates?
From the slides to the classroom
Activities used in this module
Activities open at marginalfalls.com. Students join using the room code supplied by their instructor.