Instruction
The year is 1820 and you are a master watchmaker in New York. You run a small shop comprised of 5 other journeymen (paid a certain rate for each watch they make or repair). You also have 3 apprentices. Population growth, improvements in the roads and the ability to ship watches up and down the coast by ship have resulted in the ability to serve larger markets and an increased demand for your watches. This has been a mixed blessing, however, because while you are able to sell more watches, you now must compete against watchmakers in Boston, Philadelphia, Baltimore and other large cities along the coast. In response, last week you issued a revised list of prices you are willing to pay (the piece rate) for each watch made or repaired by your journeyman watchmakers. Your list cuts piece rates across the board. The next day only your apprentices showed up to work and that has been the case every day. You have attempted to hire other journeymen watchmakers, but it appears that only those known to be unreliable drunkards, inferior watchmakers, or both, are offering to work at the reduced piece rates. You did some investigating and learned that your competitors around town have also been cutting the piece rate and that the journeymen watchmakers have been meeting and have formed an organization that forbids its members from working for any watchmaker paying at the reduced piece rates.