Students are given tickets and asked to report their willingness to pay for their assigned ticket; they are then given an opportunity to trade and willingness to pay is re-calculated. Extensions include restricting and then opening who students can trade with, and allowing students to place monetary bids for certain tickets.
For larger classes, can be done with a sub-set of students as a demonstration for the rest of the class. Have students predict what will happen to total social benefit between rounds.
Can follow with discussion of allocation mechanisms by asking students for alternative ways to allocate the tickets. Please seeTrade Clicker Questionsdocument.