The authors present a classroom experiment designed to illustrate key concepts of third-degree price discrimination. By participating as buyers and sellers, students actively learn (1) how group pricing differs from uniform pricing,(2) how resale between buyers limits a seller's ability to price...

The introduction of the concept of network effects is useful at the principles level to facilitate discussions of the determinants of monopoly, the need for standards in high-tech industries, and the general complexity of real-world competition. The author describes a demonstration and an...

The authors’ aim in this article was to show how the use of classroom experiments may be a good pedagogical tool to teach the Nash equilibrium (NE) concept. The basic game is a version of the beauty contest game (BCG), a simple guessing game in which repetition lets students react to...

This classroom exercise illustrates the Tiebout (1956) hypothesis that residential sorting across multiple jurisdictions leads to a more efficient allocation of local public goods. The exercise places students with heterogeneous preferences over a public good into a single classroom community. A...

The authors describe a classroom experiment that motivates student understanding of behavior toward risk and its effect on money demand. In this experiment, students are endowed with an income stream that they can allocate between a risk-free fund and a risky fund. Changes in volatility are...

The authors present a simple classroom game in which students are randomly designated as employers, purple workers, or green workers. This environment may generate “statistical†discrimination if workers of one color tend not to invest because they anticipate lower opportunities in the...

The author presents a brief classroom demonstration illustrating Bertrand price undercutting. The demonstration is appropriate for micro principles and intermediate- and upper-level undergraduate classes, as well as graduate classes in micro, industrial organization, and game theory.

Managing local environmental resources with moderately enforced government regulations can often be counterproductive, whereas nonbinding communications can be remarkably effective. The authors describe a classroom experiment that illustrates these points. The experiment is rich in its...

The author combines the supply and demand model of taxes with a Cournot model of bribe takers to develop a simple and useful framework for understanding the effect of corruption on economic activity. There are many examples of corruption in both developed and developing countries. Because...

The authors examine concurrent enrollment programs (CEP) as an effective means of teaching college economics in high school. They describe the establishment of the National Alliance of Concurrent Enrollment Partnerships to set national standards for CEP. They also investigate the performance of...