| The Student is a
Participant as Well as an Observer in Experiments that Teach Economic
Principles
In the economics course students experience the principles
of economics firsthand. They are active participants with their
fellow on-line class-mates in online experiments, attempting to
make deals with other traders in a market.
After each experiment, the data the class generates
is stored and students complete an online workbook. Each workbook
is unique (though, all students answer the same basic questions).
The workbook guides the student through the analysis and much of
the economic theory needed to understand the experiment. If economic
theories have uncovered basic truths, then they should be able to
predict and illuminate what happened in the student market.
One nice feature about these experiments is that the
student can be a participant as well as an observer. As a participant
students will be able to experience firsthand the issues that all
economic agents must confront. Students often report that they learn
nearly as much about economic principles from their experience as
a participant as they do from their analysis of the experiment as
an observer.
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Click
image to enlarge. |
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In this screen shot, the student is participating
in a Supply and Demand Experiment. In this market the student is
trading textbooks.
When a demander acquires a book on the market, he
earns his Buyer Value, so a demander's profit will equal his Buyer
Value minus the price he pays. (If the demander can not buy a book
he will earn $0.)
Suppliers of textbooks can produce a book by paying
their Seller Cost. Thus, a supplier's profit will equal the price
she receives minus her Seller Cost. (If a supplier can not sell
a book she will earn $0.)
The screen shows one student’s current offers
and the record their transactions so far in this experiment. |