Economic experiments

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A common tool used in the economics classroom is the economic experiment. Economic experiments can range from online games to in-class demonstrations. Students tend to benefit greatly from economic experiments simply because the experiments make abstract economic concepts come to life. Below is an example:

Game: #156
Course: Micro, Health Economics, Public Economics
Level: Intermediate and up
Subject(s): Asymmetric information and adverse selection
Objective: To illustrate that asymmetric information leads to adverse selection.
Reference and contact: Mellor, Jennifer M. "Illustrating adverse selection in health insurance markets with a classroom game." Southern Economic Journal, October 2005, Vol. 72, No. 2, pp. 502–515.
Abstract: Students take on the role of health insurance buyers and sellers. In part one of the game, there are two buyer types: high-risk and low-risk. Early periods are played under full information while later periods are played under asymmetric information conditions (in which sellers must sell their policies to all buyers at the same price). In part two of the game sellers may offer two types of health insurance policies: moderate coverage and generous coverage. As before, the early periods are played under full information while later periods are played under asymmetric information.
Class Size: Groups of 10 to 35 students.
Time: One 75-minute period to run both parts of the game
Variations: n/a
See also: Information games


For more possible economic experiments go to http://www.marietta.edu/~delemeeg/games/.