Economic Classroom Experiments

This page refers to information on economic classroom experiments and related material.

Numbers insist that an economic model of giving, can produce an economy of abundance in that, if all were to give consistently, a substantial amount, into, let's picture it as a river of abundance. What you do not need for right now goes to the river. And what you need when you need it comes from the river, for the most part. We see something similar to this in paying taxes to support the public welfare system. The problem is that these welfare systems that are in place, are terribly inefficient. And more money goes to paying employees of the system to manage the lesser amount of money actually going to public welfare.

I challenge anyone to run the numbers and prove the giving river wrong. Also, a challenge to anyone to say the public welfare system is not riddled with inefficiency...

Why use experiments in teaching economics?

 * 1) They help students to understand an otherwise abstract model. In the double auction experiment they experience, for example, how demand and supply drive the market towards equilibrium. It's learning by doing.
 * 2) To show that economic theory can work (for instance, in a Bertrand game). This is important because students or the general public are often sceptical about the use of mathematical analysis in economics.
 * 3) To show that economic theory might not work (for instance, in an ultimatum game). This quickly leads to questions on the current frontier of our science.
 * 4) An experiment can make it easier for students to grasp a threshold concept like Nash equilibrium.

List of Experiments

 * 1) The Twenty pound auction
 * 2) The Wallet Game
 * 3) The Ultimatum and the Dictator Bargaining Games
 * 4) The Public Good Game
 * 5) Private Value Auctions
 * 6) The Insurance Game
 * 7) Currency Attack
 * 8) Bertrand Competition
 * 9) American Call Option
 * 10) Diamond Dybvig Experiment
 * 11) Hold-Up Problem
 * 12) Kiyotaki Wright Hazlett Experiment
 * 13) Lemon Game
 * 14) Miniconomy
 * 15) Monty Hall Paradox
 * 16) Network Externalities
 * 17) Price Discrimination
 * 18) Team Draft
 * 19) Warren Buffett
 * 20) The Guessing Game
 * 21) Search
 * 22) Pit Market
 * 23) Complete List of Interactive Experiments