Marketing experiment idea
September 1st, 2008We would like to conduct an experiment based on Markets, Value, and Speculation. The design for the experiment will need to include at least a class of 30 children in the elementary school age. What the experiment will entail is 3 boxes of baseball cards or roll playing game cards like Magic The Gathering or something to that nature. The experimental subjects (the children in the class) will all be given the same amount of the packages of cards and will be told to open them. They are allowed to trade the cards if they are not satisfied with the players on the trading cards they have. Most of the children will go around and compare what they have with the others. They shiny or more gloss cards will be considered more valuable then the “regular” cards. This is the first part of the experiment which is analyzing the behavior of humans and how the look to see what others have prior to getting something, The “Keeping Up with The Jones’ Theory”. This represents the “value” part of the experiment. Assessing how much things will be worth based on scarcity of the commodity.
The second part of the experiment is watching those who are weak in the desired trading cards desired, to take advantage of the less intelligent or weaker minded subjects. The stronger subjects will try to convince the weaker subject to give up their good card for a bad card. The stronger subject will probably go after the shiny cards or thinker cards, not any of the “regular looking” cards. This represents the “markets” aspect of the experiment.
The next step is the speculation part of the experiment. The teacher, who represents a “trusted advisor” or what may be known as a stock broker or government regulator in the adult world, is going to implement a new variable. Originally, the market or the subjects who are children, assessed the value of the of the cards based on observing each others collection and then assessing the value based on scarcity. This took time because each person needed to interact personally with each other to compare their cards. After that value was assessed, the stronger business minded subjects, convince the weaker subjects into trading less valuable cards based on the market level value making their portfolio of cards better or more valuable. The teacher now comes in with a card valuing system, something like Beckett Magazine, and tells all the subjects that the shiny cards are worth less than the regular cards. After the teacher does this, they should leave the classroom and observe the children and what they do next. The weaker minded subjects now have the power, which would be similar to what self governing would be like and the minority stronger business minded subjects will start using force or debunk the magazine’s claims with regard to the values of the trading cards. The would be the speculation phase of the experiment. The subjects are all believing one sources claim and therefore chaos has ensued, until those who are stronger minded realize that the magazine’s claims may be false and they want to hold onto the more scarce gets. This leaves both parties satisfied. The weaker minded subjects will believe they have the greatest cards because the “magazine says so” which is similar how the media works in the united states. The stronger minded subjects will challenge the magazine’s claims and hold on to the more scarce card. We see this in the current 2008 elections process. If you talk to most people they like Barack Obama because he is the answer that give power to the masses, but the stronger minded people are not following Mr. Obama, and possibly not John McCain. Most likely it is a third party candidate they have faith in.
In short, the market should be the medium tht determines the value of a good, not the media, speculators, or bullying businessmen. The market works and always will work efficiently and safe in a traditional supply and demand format.