My experimental design looks to model a posted offer market where sellers are allowed to offer vouchers good for discounted prices off future purchases. This experiment serves to exemplify a technique used by retailers during traditionally designated shopping days such as Labor Day weekend, or Black Friday.  
The experimental modification was inspired by my Black Friday deal hunting. While searching for the best available price for a new Ipod, I came across various retailers that offered not just a reduced price for the Ipod, but Ipods bundled along with gift a card. After weighing in the pros and cons of making the purchase, I ultimately decided to go ahead and purchase the Ipod. Although it was only a $20 gift card, which seemed almost arbitrary compared to the Ipod priced at $260, having the option to save any positive amount of money in the future towards any purchase at Bestbuy was attractive to me. I then wondered if running a controlled economic experiment could replicate my economic intuition and present it in a way that would give a clearer understanding of how consumers develop their preferences.
The experiment will be run as a modified version of the traditional posted offer markets. There will be a 10 periods where 10 sellers (S1-S10) and 10 buyers (B1-B10) interact in a two-step process: The seller will select a price to sell a maximum number of units at for each period. Once all five sellers have selected a price and a maximum number of units to sell, a buyer is randomly drawn and allowed to buy as many units at he/she desires up to the maximum amount posted buy the seller, at the seller’s price. Each buyer is randomly selected until all have had a chance to make purchases. It should be noted that sellers have increasing costs and buyers have decreasing purchasing power.
The modified posted offer auction adds the option for sellers to offer a voucher during the posting of the prices and units. These vouchers are non-transferable and once accepted by the buyer, the vouchers expire after 2 periods. Every period a seller is randomly selected to receive the ability to offer this voucher. The voucher works as such: for each unit bought by the buyers, he/she gets 5% off a future per unit purchase provided by that seller. For example, if S1 is randomly selected to offer a voucher, and posts 3 units at $4.00 each, if the buyers decided to buy a single unit he/she gets 5% off the price of a single unit next period. However, if B1 decides to purchase all 3, he/she gets 15% off his next set of purchases for the next period if he/she decides to buy from the seller again.
	I hypothesis this change will cause there to be a higher number of units sold per period. This is because there will be a higher number of units sold for a lower price than compared to a traditional posted offer market.  The predicted results of the experiment also Prices will still converge from above, at a much slower pace than that of a double oral auction.
