The Frozen Price Game

In Episode One we talk about how economists like Mike Munger can see anything positive in something like price gouging. He argues that it can address the problem of scarcity by motivating suppliers to get goods into places in need, in a timely fashion.

As part of the show, you'll hear an experiment with a dozen or so CBC listeners, which was based on The Frozen Price Game. It's a model used to teach high school and university students about concepts like price allocation and supply and demand, created by Lori Alden.

The exercise limits the number of variables at play to create two specific scenarios, and the participants were asked their opinion on the two outcomes.