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Demand, Supply and Equilibrium

Textbook Chapter: Chapter 4 (Microeconomics & Macroeconomics)

MobLab Game: Competitive Market

Key Learning Objectives:

  • The “invisible hand” of the market: how individual profit maximization leads to competitive market equilibrium.
  • Price discovery: the equilibrium market-clearing price results from the valuations of different buyers and costs of different sellers.
  • Gains from trade (i.e., consumer and producer surplus).
  • Shifts in either supply or demand change equilibrium outcomes.

Sellers and Incentives

Textbook Chapter: Chapter 6 (Microeconomics)

MobLab Game: Production, Entry & Exit

Key Learning Objectives:

  • Short-run profit maximization involves thinking at the margin.
  • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

MobLab Survey: Mental Accounting: Sunk Costs

Key Learning Objectives:

  • Surplus maximization requires ignoring sunk costs.
  • Easier said than done!

Trade

Textbook Chapter: Chapter 8 (Microeconomics)

MobLab Game: Comparative Advantage

Key Learning Objectives:

  • The distinction between absolute and comparative advantage.
  • Experience first hand the gains from specialization and trade.
  • Differences in opportunity costs lead to mutually beneficial trade.

Externalities

Textbook Chapter: Chapter 9 (Microeconomics)

MobLab Game: Externalities w/Policy Interventions

Key Learning Objectives:

  • With externalities, the equilibrium of a competitive market without interventions is inefficient.
  • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.

Public Goods

Textbook Chapter: Chapter 9 (Microeconomics)

MobLab Game: Public Good: Discrete (Threshold)outcomes.

Oligopoly

Textbook Chapter: Chapter 14 (Microeconomics)

MobLab Game: Bertrand Competitiony

Textbook Chapter: Chapter 14 (Microeconomics)

MobLab Game: Bertrand Competitioncer surplus).

  • Shifts in either supply or demand change equilibrium outcomes.
  • Sellers and Incentives

    Textbook Chapter: Chapter 6 (Microeconomics)

    MobLab Game: Production, Entry & Exit

    Key Learning Objectives:

    • Short-run profit maximization involves thinking at the margin.
    • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

    MobLab Survey: Mental Accounting: Sunk Costs

    Key Learning Objectives:

    • Surplus maximization requires ignoring sunk costs.
    • Easier said than done!

    Trade

    Textbook Chapter: Chapter 8 (Microeconomics)

    MobLab Game: Comparative Advantage

    Key Learning Objectives:

    • The distinction between absolute and comparative advantage.
    • Experience first hand the gains from specialization and trade.
    • Differences in opportunity costs lead to mutually beneficial trade.

    Externalities

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Externalities w/Policy Interventions

    Key Learning Objectives:

    • With externalities, the equilibrium of a competitive market without interventions is inefficient.
    • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.

    Public Goods

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Public Good: Discrete (Threshold)

    Key Learning Objectives:

    • Highlights the features of public goods: non-rival and non-excludable.
    • Demonstrates the distinction between private and social benefits of public goods.
    • Shows how individual profit maximization leads to the free-rider problem.

    Common Pool Resources

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Commons: Fishery

    Key Learning Objectives:

    • Individual profit maximization leads to overuse of a common-pool resource.
    • Communication and repeat-play may lead to better outcomes than predicted on standard theory.

    Government Interventions in Competitive Markets

    Textbook Chapter: Chapter 10 (Microeconomics)

    MobLab Game: Competitive Market

    Key Learning Objectives:

    Macroeconomics)

    MobLab Game: Competitive Market

    Key Learning Objectives:

    • The “invisible hand” of the market: how individual profit maximization leads to competitive market equilibrium.
    • Price discovery: the equilibrium market-clearing price results from the valuations of different buyers and costs of different sellers.
    • Gains from trade (i.e., consumer and produ Macroeconomics)

      MobLab Game: Competitive Market

      Key Learning Objectives:

      • The “invisible hand” of the market: how individual profit maximization leads to competitive market equilibrium.
      • Price discovery: the equilibrium market-clearing price results from the valuations of different buyers and costs of different sellers.
      • Gains from trade (i.e., consumer and producer surplus).
      • Shifts in either supply or demand change equilibrium outcomes.

      Sellers and Incentives

      Textbook Chapter: Chapter 6 (Microeconomics)

      MobLab Game: Production, Entry & Exit

      Key Learning Objectives:

      • Short-run profit maximization involves thinking at the margin.
      • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

      MobLab Survey: Mental Accounting: Sunk Costs

      Key Learning Objectives:

      • Surplus maximization requires ignoring sunk costs.
      • Easier said than done!

      Trade

      Textbook Chapter: Chapter 8 (Microeconomics)

      MobLab Game: Comparative Advantage

      Key Learning Objectives:

      • The distinction between absolute and comparative advantage.
      • Experience first hand the gains from specialization and trade.
      • Differences in opportunity costs lead to mutually beneficial trade.

      Externalities

      Textbook Chapter: Chapter 9 (Microeconomics)

      MobLab Game: Externalities w/Policy Interventions

      Key Learning Objectives:

      • With externalities, the equilibrium of a competitive market without interventions is inefficient.
      • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.

      Public Goods

      Textbook Chapter: Chapter 9 (Microeconomics)

      MobLab Game: Public Good: Discrete (Threshold)

      Key Learning Objectives:

      • Highlights the features of public goods: non-rival and non-excludable.
      • Demonstrates the distinction between private and social benefits of public goods.
      • Shows how individual profit maximization leads to the free-rider problem.

      Common Pool Resources

      Textbook Chapter: Chapter 9 (Microeconomics)

      MobLab Game: Commons: Fishery

      Key Learning Objectives:

      • Individual profit maximization leads to overuse of a common-pool resource.
      • Communication and repeat-play may lead to better outcomes than predicted on standard theory.

      Government Interventions in Competitive Markets

      Textbook Chapter: Chapter 10 (Microeconomics)

      MobLab Game: Competitive Market

      Key Learning Objectives:

      • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilibrium outcomes.
      • Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
      • The difference between tax incidence and who pays the tax.
      • Relative elasticities determine incidence of a tax or subsidy.
      • Excess supply (price floors) and excess demand (price ceilings).
      • The efficiency implications of government interventions.

      Monopoly Pricing

      Textbook Chapter: Chapter 12 (Microeconomics)

      MobLab Game: Cournot (with Group Size=1)

      Key Learning Objectives:

      • Monopolies restrict output in order to increase price.
      • The tension between the quantity price effects of increased output.

      Game Theory

      Textbook Chapter: Chapter 13 (Microeconomics)

      MobLab Game: Prisoner’s Dilemma

      Key Learning Objectives:

      • Key features of games: payoff matrices, best responses and dominant strategies.
      • Identification of the Nash equilibrium.
      • The (sometimes) conflicting incentives of cooperation and self-interest.
      • Repeated play may lead to more cooperative outcomes.

      Oligopoly

      Textbook Chapter: Chapter 14 (Microeconomics)

      MobLab Game: Bertrand Competition

      Key Learning Objectives:

      • When selling an undifferentiated product without capacity constraints, firms have strong short-run incentives to engage in vigorous price competition.
      • Marginal-cost pricing may arise in markets with as few as two firms.
      • Repeat interaction may lead to collusive behavior.

      Tradeoffs Involving Risk and Time

      Textbook Chapter: Chapter 15 (Microeconomics)

      MobLab Game: Risk Preferences: Bomb-Risk Game

      Key Learning Objectives:

      • Helps the player understand expected value and thinking on the margin.
      • Helps a player understand her own preferences towards risk, and how risk attitudes vary across a population.

      Asymmetric Information (Adverse Selection)

      Textbook Chapter: Chapter 16 (Microeconomics)

      MobLab Game: Market for Lemons

      Key Learning Objectives:

      • Experience in a market with asymmetric information.
      • Asymmetric information may lead to adverse selection and market failure.

      Auctions

      Textbook Chapter: Chapter 17 (Microeconomics)

      MobLab Game: Private Value Sealed Bid Auction

      Key Learning Objectives:

      • Gain bidding experience.
      • Shows the equivalence between the first and second-price auctions.

      Bargaining

      Textbook Chapter: Chapters 17 & 18 (Microeconomics)

      MobLab Game: Ultimatum Game

      Key Learning Objectives:

      • Demonstrates how social norms such as fairness and altruism may result in behaviors that deviate from game theoretic predictions.

      Trust and Fairness

      Textbook Chapter: Chapter 18 (Microeconomics)

      MobLab Game: Trust Game

      Key Learning Objectives:

      • Highlights potential gains from trade arising from trust and trustworthiness.
      • Allow players to explore issues concerning fairness and reciprocity.

      Unemployment

      Textbook Chapter: Chapter 9 (Macroeconomics)

      MobLab Game: Simple Labor Market

      Key Teaching Points:

      • Employment levels are determined by both the supply and demand of labor.
      • Policies such as a minimum wage or unemployment insurance affect structural unemployment.

      Credit Markets

      Textbook Chapter: Chapter 10 (Macroeconomics)

      MobLab Game: Bank Runth externalities, the equilibrium of a competitive market without interventions is inefficient.

    • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.

    Public Goods

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Public Good: Discrete (Threshold)

    Key Learning Objectives:

    • Highlights the features of public goods: non-rival and non-excludable.
    • Demonstrates the distinction between private and social benefits of public goods.
    • Shows how individual profit maximization leads to the free-rider problem.

    Common Pool Resources

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Commons: Fishery

    Key Learning Objectives:

    • Individual profit maximization leads to overuse of a common-pool resource.
    • Communication and repeat-play may lead to better outcomes than predicted on standard theory.

    Government Interventions in Competitive Markets

    Textbook Chapter: Chapter 10 (Microeconomics)

    MobLab Game: Competitive Market

    Key Learning Objectives:

    • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilibrium outcomes.
    • Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
    • The difference between tax incidence and who pays the tax.
    • Relative elasticities determine incidence of a tax or subsidy.
    • Excess supply (price flooth externalities, the equilibrium of a competitive market without interventions is inefficient.
    • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.

    Public Goods

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Public Good: Discrete (Threshold)ocial benefits of public goods.

  • Shows how individual profit maximization leads to the free-rider problem.
  • Common Pool Resources

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Commons: Fishery

    Key Learning Objectives:

    • Individual profit maximization leads to overuse of a common-pool resource.
    • Communication and repeat-play may lead to better outcomes than predicted on standard theory.

    Government Interventions in Competitive Markets

    Textbook Chapter: Chapter 10 (Microeconomics)

    MobLab Game: Competitive Market

    Key Learning Objectives:

    • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilibrium outcomes.
    • Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
    • The difference between tax incidence and who pays the tax.
    • Relative elasticities determine incidence ofocial benefits of public goods.
    • Shows how individual profit maximization leads to the free-rider problem.

    Common Pool Resources

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Commons: Fisheryhout interventions is inefficient.

  • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.
  • Public Goods

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Public Good: Discrete (Threshold)i>

  • Gains from trade (i.e., consumer and producer surplus).
  • Shifts in either supply or demand change equilibrium outcomes.
  • Sellers and Incentives

    Textbook Chapter: Chapter 6 (Microeconomics)

    MobLab Game: Production, Entry & Exit

    Key Learning Objectives:

    • Short-run profit maximization involves thinking at the margin.
    • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

    MobLab Survey: Mental Accounting: Sunk Costs

    Key Learning Objectives:

    • Surplus maximization requires ignoring sunk costs.
    • Easier said than done!

    Trade

    Textbook Chapter: Chapter 8 (Microeconomics)

    MobLab Game: Comparative Advantage

    Key Learning Objectives:

    • The distinction between absolute and comparative advantage.
    • Experience first hand the gains from specialization and trade.
    • Differences in opportunity costs lead to mutually beneficial trade.

    Externalities

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Externalities w/Policy Interventions

    Key Learning Objectives:

    • With externalities, the equilibrium of a competitive market without interventions is inefficient.
    • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.

    Public Goods

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Public Good: Discrete (Threshold)

    Key Learning Objectives:

    • Highlights the features of public goods: non-rival and non-excludable.
    • Demonstrates the distinction between private and social benefits of public goods.
    • Shows how individual profit maximization leads to the free-rider problem.

    Common Pool Resources

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Commons: Fishery

    Key Learning Objectives:

    • Individual profit maximization leads to overuse of a common-pool resource.
    • Communication and repeat-play may lead to better outcomes than predicted on standard theory.

    Government Interventions in Competitive Markets

    Textbook Chapter: Chapter 10 (Microeconomics)

    MobLab Game: Competitive Market

    Key Learning Objectives:

    • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilibrium outcomes.
    • Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
    • The difference between tax incidence and who pays the tax.
    • Relative elasticities determine incidence of a tax or subsidy.
    • Excess supply (price floors) and excess demand (price ceilings).
    • The efficiency implications of government interventions.

    Monopoly Pricing

    Textbook Chapter: Chapter 12 (Microeconomics)

    MobLab Game: Cournot (with Group Size=1)

    Key Learning Objectives:

    • Monopolies restrict output in order to increase price.
    • The tension between the quantity price effects of increased output.

    Game Theory

    Textbook Chapter: Chapter 13 (Microeconomics)

    MobLab Game: Prisoner’s Dilemma

    Key Learning Objectives:

    • Key features of games: payoff matrices, best responses and dominant strategies.
    • Identification of the Nash equilibrium.
    • The (sometimes) conflicting incentives of cooperation and self-interest.
    • Repeated play may lead to more cooperative outcomes.

    Oligopoly

    Textbook Chapter: Chapter 14 (Microeconomics)

    MobLab Game: Bertrand Competition

    Key Learning Objectives:

    • When selling an undifferentiated product without capacity constraints, firms have strong short-run incentives to engage in vigorous price competition.
    • Marginal-cost pricing may arise in markets with as few as two firms.
    • Repeat interaction may lead to collusive behavior.

    Tradeoffs Involving Risk and Time

    Textbook Chapter: Chapter 15 (Microeconomics)

    MobLab Game: Risk Preferences: Bomb-Risk Gamevolving Risk and Time

    Textbook Chapter: Chapter 15 (Microeconomics)

    MobLab Game: Risk Preferences: Bomb-Risk Game

    Externalities

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Externalities w/Policy Interventions

    Key Learning Objectives:

    • With externalities, the equilibrium of a competitive market without interventions is inefficient.
    • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.

    Public Goods

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Public Good: Discrete (Threshold)

    Key Learning Objectives:

    • Highlights the features of public goods: non-rival and non-excludable.
    • Demonstrates the distinction between private and social benefits of public goods.
    • Shows how individual profit maximization leads to the free-rider problem.

    Common Pool Resources

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Commons: Fishery

    Key Learning Objectives:

    • Individual profit maximization leads to overuse of a common-pool resource.
    • Communication and repeat-play may lead to better outcomes than predicted on standard theory.

    Government Interventions in Competitive Markets

    Textbook Chapter: Chapter 10 (Microeconomics)

    MobLab Game: Competitive Market

    Key Learning Objectives:

    • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilibrium outcomes.
    • Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
    • The difference between tax incidence and who pays the tax.
    • Relative elasticities determine incidence of a tax or subsidy.
    • Excess supply (price floors) and excess demand (price ceilings).
    • The efficiency implications of government interventions.

    Monopoly Pricing

    Textbook Chapter: Chapter 12 (Microeconomics)

    MobLab Game: Cournot (with Group Size=1)

    Key Learning Objectives:

    • Monopolies restrict output in order to increase price.
    • The tension between the quantity price effects of increased output.

    Game Theory

    Textbook Chapter: Chapter 13 (Microeconomics)

    MobLab Game: Prisoner’s Dilemma

    Key Learning Objectives:

    • Key features of games: payoff matrices, best responses and dominant strategies.
    • Identification of the Nash equilibrium.
    • The (sometimes) conflicting incentives of cooperation and self-interest.
    • Repeated play may lead to more cooperative outcomes.

    Oligopoly

    Textbook Chapter: Chapter 14 (Microeconomics)

    MobLab Game: Bertrand Competition

    Key Learning Objectives:

    • When selling an undifferentiated product without capacity constraints, firms have strong short-run incentives to engage in vigorous price competition.
    • Marginal-cost pricing may arise in markets with as few as two firms.
    • Repeat interaction may lead to collusive behavior.

    Tradeoffs Involving Risk and Time

    Textbook Chapter: Chapter 15 (Microeconomics)

    MobLab Game: Risk Preferences: Bomb-Risk Game

    Key Learning Objectives:

    • Helps the player understand expected value and thinking on the margin.
    • Helps a player understand her own preferences towards risk, and how risk attitudes vary across a population.

    Asymmetric Information (Adverse Selection)

    Textbook Chapter: Chapter 16 (Microeconomics)

    MobLab Game: Market for Lemons

    Key Learning Objectives:

    • Experience in a market with asymmetric information.
    • Asymmetric information may lead to adverse selection and market failure.

    Auctions

    Textbook Chapter: Chapter 17 (Microeconomics)

    MobLab Game: Private Value Sealed Bid Auction

    Key Learning Objectives:

    Trade

    Textbook Chapter: Chapter 8 (Microeconomics)

    MobLab Game: Comparative Advantagemplications of government interventions.

    Monopoly Pricing

    Textbook Chapter: Chapter 12 (Microeconomics)

    MobLab Game: Cournot (with Group Size=1)

    Key Learning Objectives:

    • Monopolies restrict output in order to increase price.
    • The tension between the quantity price effects of increased output.

    Game Theory

    Textbook Chapter: Chapter 13 (Microeconomics)

    MobLab Game: Prisoner’s Dilemma

    Key Learning Objectives:

    • Key features of games: payoff matrices, best responses and dominant strategies.
    • Identification of the Nash equilibrium.
    • The (sometimes) conflicting incentives of cooperation and self-interest.
    • Repeated play may lead to more cooperative outcomes.

    Oligopoly

    Textbook Chapter: Chapter 14 (Microeconomics)

    MobLab Game: Bertrand Competitioni>

  • Gains from trade (i.e., consumer and producer surplus).
  • Shifts in either supply or demand change equilibrium outcomes.
  • Sellers and Incentives

    Textbook Chapter: Chapter 6 (Microeconomics)

    MobLab Game: Production, Entry & Exit

    Key Learning Objectives:

    • Short-run profit maximization involves thinking at the margin.
    • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

    MobLab Survey: Mental Accounting: Sunk Costs

    Key Learning Objectives:

    • Surplus maximization requires ignoring sunk costs.
    • Easier said than done!

    Trade

    Textbook Chapter: Chapter 8 (Microeconomics)

    MobLab Game: Comparative Advantage

    Key Learning Objectives:

    • The distinction between absolute and comparative advantage.
    • Experience first hand the gains from specialization and trade.
    • Differences in opportunity costs lead to mutually beneficial trade.

    Externalities

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Externalities w/Policy Interventions

    Key Learning Objectives:

    • With externalities, the equilibrium of a competitive market without interventions is inefficient.
    • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.

    Public Goods

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Public Good: Discrete (Threshold)

    Key Learning Objectives:

    • Highlights the features of public goods: non-rival and non-excludable.
    • Demonstrates the distinction between private and social benefits of public goods.
    • Shows how individual profit maximization leads to the free-rider problem.

    Common Pool Resources

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Commons: Fishery

    Key Learning Objectives:

    • Individual profit maximization leads to overuse of a common-pool resource.
    • Communication and repeat-play may lead to better outcomes than predicted on standard theory.

    Government Interventions in Competitive Markets

    Textbook Chapter: Chapter 10 (Microeconomics)

    MobLab Game: Competitive Market

    Key Learning Objectives:

    • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilibrium outcomes.
    • Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
    • The difference between tax incidence and who pays the tax.
    • Relative elasticities determine incidence of a tax or subsidy.
    • Excess supply (price floors) and excess demand (price ceilings).
    • The efficiency implications of government interventions.

    Monopoly Pricing

    Textbook Chapter: Chapter 12 (Microeconomics)

    MobLab Game: Cournot (with Group Size=1)

    Key Learning Objectives:

    • Monopolies restrict output in order to increase price.
    • The tension between the quantity price effects of increased output.

    Game Theory

    Textbook Chapter: Chapter 13 (Microeconomics)

    MobLab Game: Prisoner’s Dilemma

    Key Learning Objectives:

    • Key features of games: payoff matrices, best responses and dominant strategies.
    • Identification of the Nash equilibrium.
    • The (sometimes) conflicting incentives of cooperation and self-interest.
    • Repeated play may lead to more cooperative outcomes.

    Oligopoly

    Textbook Chapter: Chapter 14 (Microeconomics)

    MobLab Game: Bertrand Competition

    Key Learning Objectives:

    • When selling an undifferentiated product without capacity constraints, firms have strong short-run incentives to engage in vigorous price competition.
    • Marginal-cost pricing may arise in markets with as few as two firms.
    • Repeat interaction may lead to collusive behavior.

    Tradeoffs Involving Risk and Time

    Textbook Chapter: Chapter 15 (Microeconomics)

    MobLab Game: Risk Preferences: Bomb-Risk Game

    Key Learning Objectives:

    • Helps the player understand expected value and thinking on the margin.
    • Helps a player understand her own preferences towards risk, and how risk attitudes vary across a population.

    Asymmetric Information (Adverse Selection)

    Textbook Chapter: Chapter 16 (Microeconomics)

    MobLab Game: Market for Lemons

    Key Learning Objectives:

    • Experience in a market with asymmetric information.
    • Asymmetric informObjectives:

      • The distinction between absolute and comparative advantage.
      • Experience first hand the gains from specialization and trade.
      • Differences in opportunity costs lead to mutually beneficial trade.

      Externalities

      Textbook Chapter: Chapter 9 (Microeconomics)

      MobLab Game: Externalities w/Policy Interventions

      Key Learning Objectives:

      • With externalities, the equilibrium of a competitive market without interventions is inefficient.
      • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.

      Public Goods

      Textbook Chapter: Chapter 9 (Microeconomics)

      MobLab Game: Public Good: Discrete (Threshold)

      Key Learning Objectives:

      • Highlights the features of public goods: non-rival and non-excludable.
      • Demonstrates the distinction between private and social benefits of public goods.
      • Shows how individual profit maximization leads to the free-rider problem.

      Common Pool Resources

      Textbook Chapter: Chapter 9 (Microeconomics)

      MobLab Game: Commons: Fishery

      Key Learning Objectives:

      • Individual profit maximization leads to overuse of a common-pool resource.
      • Communication and repeat-play may lead to better outcomes than predicted on standard theory.

      Government Interventions in Competitive Markets

      Textbook Chapter: Chapter 10 (Microeconomics)

      MobLab Game: Competitive Market

      Key Learning Objectives:

      • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilibrium outcomes.
      • Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
      • The difference between tax incidence and who pays the tax.
      • Relative elasticities determine incidence of a tax or subsidy.
      • Excess supply (price floors) and excess demand (price ceilings).
      • The efficiency implications of government interventions.

      Monopoly Pricing

      Textbook Chapter: Chapter 12 (Microeconomics)

      MobLab Game: Cournot (with Group Size=1)

      Key Learning Objectives:

      • Monopolies restrict output in order to increase price.
      • The tension between the quantity price effects of increased output.

      Game Theory

      Textbook Chapter: Chapter 13 (Microeconomics)

      MobLab Game: Prisoner’s Dilemma

      Key Learning Objectives:

      • Key features of games: payoff matrices, best responses and dominant strategies.
      • Identification of the Nash equilibrium.
      • The (sometimes) conflicting incentives of cooperation and self-interest.
      • Repeated play may lead to more cooperative outcomes.

      Oligopoly

      Textbook Chapter: Chapter 14 (Microeconomics)

      MobLab Game: Bertrand Competition

      Key Learning Objectives:

      • When selling an undifferentiated product without capacity constraints, firms have strong short-run incentives to engage in vigorous price competition.
      • Marginal-cost pricing may arise in markets with as few as two firms.
      • Repeat interaction may lead to collusive behavior.

      Tradeoffs Involving Risk and Time

      Textbook Chapter: Chapter 15 (Microeconomics)

      MobLab Game: Risk Preferences: Bomb-Risk Game

      Key Learning Objectives:

      • Helps the player understand expected value and thinking on the margin.
      • Helps a player understand her own preferences towards risk, and how risk attitudes vary across a population.

      Asymmetric Information (Adverse Selection)

      Textbook Chapter: Chapter 16 (Microeconomics)

      MobLab Game: Market for Lemons

      Key Learning Objectives:

      • Experience in a market with asymmetric information.
      • Asymmetric informObjectives:

        • The distinction between absolute and comparative advantage.
        • Experience first hand the gains from specialization and trade.
        • Differences in opportunity costs lead to mutually beneficial trade.

        Externalities

        Textbook Chapter: Chapter 9 (Microeconomics)

        MobLab Game: Externalities w/Policy Interventions4 (Microeconomics & Macroeconomics)

        MobLab Game: Competitive Market

        Key Learning Objectives:

        • The “invisible hand” of the market: how individual profit maximization leads to competitive market equilibrium.
        • Price discovery: the equilibrium market-clearing price results from the valuations of different buyers and costs of different sellers.
        • Gains from trade (i.e., consumer and producer surplus).
        • Shifts in either supply or demand change equilibrium outcomes.

        Sellers and Incentives

        Textbook Chapter: Chapter 6 (Microeconomics)

        MobLab Game: Production, Entry & Exit

        Key Learning Objectives:

        • Short-run profit maximization involves thinking at the margin.
        • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

        MobLab Survey: Mental Accounting: Sunk Costs

        Key Learning Objectives:

        • Surplus maximization requires ignoring sunk costs.
        • Easier said than done!

        Trade

        Textbook Chapter: Chapter 8 (Microeconomics)

        MobLab Game: Comparative Advantage

        Key Learning Objectives:

        • The distinction between absolute and comparative advantage.
        • Experience first hand the gains from specialization and trade.
        • Differences in opportunity costs lead to mutually beneficial trade.

        Externalities

        Textbook Chapter: Chapter 9 (Microeconomics)

        MobLab Game: Externalities w/Policy Interventions

        Key Learning Objectives:

        • With externalities, the equilibrium of a competitive market without interventions is inefficient.
        • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.

        Public Goods

        Textbook Chapter: Chapter 9 (Microeconomics)

        MobLab Game: Public Good: Discrete (Threshold)

        Key Learning Objectives:

        • Highlights the features of public goods: non-rival and non-excludable.
        • Demonstrates the distinction between private and social benefits of public goods.
        • Shows how individual profit maximization leads to the free-rider problem.

        Common Pool Resources

        Textbook Chapter: Chapter 9 (Microeconomics)

        MobLab Game: Commons: Fishery

        Key Learning Objectives:

        • Individual profit maximization leads to overuse of a common-pool resource.
        • Communication and repeat-play may lead to better outcomes than predicted on standard theory.

        Government Interventions in Competitive Markets

        Textbook Chapter: Chapter 10 (Microeconomics)

        MobLab Game: Competitive Market

        Key Learning Objectives:

        • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilibrium outcomes.
        • Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
        • The difference between tax incidence and who pays the tax.
        • Relative elasticities determine incidence of a tax or subsidy.
        • Excess supply (price floors) and excess demand (price ceilings).
        • The efficiency implications of government interventions.

        Monopoly Pricing

        Textbook Chapter: Chapter 12 (Microeconomics)

        MobLab Game: Cournot (with Group Size=1)

        Key Learning Objectives:

        • Monopolies restrict output in order to increase price.
        • The tension between the quantity price effects of increased output.

        Game Theory

        Textbook Chapter: Chapter 13 (Microeconomics)

        MobLab Game: Prisoner’s Dilemma

        Key Learning Objectives:

        • Key features of games: payoff matrices, best responses and dominant strategies.
        • Identification of the Nash equilibrium.
        • The (sometimes) conflicting incentives of cooperation and self-interest.
        • Repeated play may lead to more cooperative outcomes.

        Oligopoly

        Textbook Chapter: Chapter 14 (Microeconomics)

        MobLab Game: Bertrand Competitionli>Policies such as a minimum wage or unemployment insurance affect structural unemployment.

      Credit Markets

      Textbook Chapter: Chapter 10 (Macroeconomics)

      MobLab Game: Bank Runantage.

    • Experience first hand the gains from specialization and trade.
    • Differences in opportunity costs lead to mutually beneficial trade.

    Externalities

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Externalities w/Policy Interventionsum outcomes.

  • Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
  • The difference between tax incidence and who pays the tax.
  • Relative elasticities determine incidence of a tax or subsidy.
  • Excess supply (price floors) and excess demand (price ceilings).
  • The efficiency implications of government interventions.
  • Monopoly Pricing

    Textbook Chapter: Chapter 12 (Microeconomics)

    MobLab Game: Cournot (with Group Size=1)

    Key Learning Objectives:

    • Monopolies restrict output in order to increase price.
    • The tension between the quantity price effects of increased output.

    Game Theory

    Textbook Chapter: Chapter 13 (Microeconomics)

    MobLab Game: Prisoner’s Dilemma

    Key Learning Objectives:

    • Key features of games: payoff matrices, best responses and dominant strategies.
    • Identification of the Nash equilibrium.
    • The (sometimes) conflicting incentives of cooperation and self-interest.
    • Repeated play may lead to more cooperative outcomes.

    Oligopoly

    Textbook Chapter: Chapter 14 (Microeconomics)

    MobLab Game: Bertrand Competition

    Key Learning Objectives:

    • When selling an undifferentiated product without capacity constraints, firms have strong short-run incentives to engage in vigorous price competition.
    • Marginal-cost pricing may arise in markets with as few as two firms.
    • Repeat interaction may lead to collusive behavior.

    Tradeoffs Involving Risk and Time

    Textbook Chapter: Chapter 15 (Microeconomics)

    MobLab Game: Risk Preferences: Bomb-Risk Game>

  • Experience in a market with asymmetric information.
  • Asymmetric information may lead to adverse selection and market failure.
  • Auctions

    Textbook Chapter: Chapter 17 (Microeconomics)

    MobLab Game: Private Value Sealed Bid Auction

    Key Learning Objectives:

    • Gain bidding experience.
    • Shows the equivalence between the first and second-price auctions.

    Bargaining

    Textbook Chapter: Chapters 17 & 18 (Microeconomics)

    MobLab Game: Ultimatum Game

    Key Learning Objectives:

    • Demonstrates how social norms such as fairness and altruism may result in behaviors that deviate from game theoretic predictions.

    Trust and Fairness

    Textbook Chapter: Chapter 18 (Microeconomics)

    MobLab Game: Trust Game

    Key Learning Objectives:

    • Highlights potential gains from trade arising from trust and trustworthiness.
    • Allow players to explore issues concerning fairness and reciprocity.

    Unemployment

    Textbook Chapter: Chapter 9 (Macroeconomics)

    MobLab Game: Simple Labor Market

    Key Teaching Points:

    • Employment levels are determined by both the supply and demand of labor.
    • Policies such as a minimum wage or unemployment insurance affect structural unemployment.

    Credit Markets

    Textbook Chapter: Chapter 10 (Macroeconomics)

    MobLab Game: Bank RunExit

    Key Learning Objectives:

    • Short-run profit maximization involves thinking at the margin.
    • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

    MobLab Survey: Mental Accounting: Sunk Costs

    Key Learning Objectives:

    • Surplus maximization requires ignoring sunk costs.
    • Easier said than done!

    Trade

    Textbook Chapter: Chapter 8 (Microeconomics)

    MobLab Game: Comparative Advantagecompetitive market without interventions is inefficient.

  • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.
  • Public Goods

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Public Good: Discrete (Threshold)on leads to the free-rider problem.

    Common Pool Resources

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Commons: Fisheryprice ceilings).

  • The efficiency implications of government interventions.
  • Monopoly Pricing

    Textbook Chapter: Chapter 12 (Microeconomics)

    MobLab Game: Cournot (with Group Size=1)

    Key Learning Objectives:

    • Monopolies restrict output in order to increase price.
    • The tension between the quantity price effects of increased output.

    Game Theory

    Textbook Chapter: Chapter 13 (Microeconomics)

    MobLab Game: Prisoner’s Dilemma

    Key Learning Objectives:

    • Key features of games: payoff matrices, best responses and dominant strategies.
    • Identification of the Nash equilibrium.
    • The (sometimes) conflicting incentives of cooperation and self-interest.
    • Repeated play may lead to more cooperative outcomes.

    Oligopoly

    Textbook Chapter: Chapter 14 (Microeconomics)

    MobLab Game: Bertrand Competition

    Key Learning Objectives:

    • When selling an undifferentiated product without capacity constraints, firms have strong short-run incentives to engage in vigorous price competition.
    • Marginal-cost pricing may arise in markets with as few as two firms.
    • Repeat interaction may lead to collusive behavior.

    Tradeoffs Involving Risk and Time

    Textbook Chapter: Chapter 15 (Microeconomics)

    MobLab Game: Risk Preferences: Bomb-Risk Game

    Demand, Supply and Equilibrium

    Textbook Chapter: Chapter 4 (Microeconomics & Macroeconomics)

    MobLab Game: Competitive Market

    Key Learning Objectives:

    • The “invisible hand” of the market: how individual profit maximization leads to competitive market equilibrium.
    • Price discovery: the equilibrium market-clearing price results from the valuations of different buyers and costs of different sellers.
    • Gains from trade (i.e., consumer and producer surplus).
    • Shifts in either supply or demand change equilibrium outcomes.

    Sellers and Incentives

    Textbook Chapter: Chapter 6 (Microeconomics)

    MobLab Game: Production, Entry & Exit

    Key Learning Objectives:

    • Short-run profit maximization involves thinking at the margin.
    • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

    MobLab Survey: Mental Accounting: Sunk Costs

    Key Learning Objectives:

    • Surplus maximization requires ignoring sunk costs.
    • Easier said than done!

    Trade

    Textbook Chapter: Chapter 8 (Microeconomics)

    MobLab Game: Comparative Advantage

    Key Learning Objectives:

    • The distinction between absolute and comparative advantage.
    • Experience first hand the gains from specialization and trade.
    • Differences in opportunity costs lead to mutually beneficial trade.

    Externalities

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Externalities w/Policy Interventions

    Key Learning Objectives:

    • With externalities, the equilibrium of a competitive market without interventions is inefficient.
    • By reducing transactions, a tax can increase efficiency (total surplus) in a market with a negative externality, whereas a subsidy can increase surplus in a market with a positive externality.

    Public Goods

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Public Good: Discrete (Threshold)

    Key Learning Objectives:

    • Highlights the features of public goods: non-rival and non-excludable.
    • Demonstrates the distinction between private and social benefits of public goods.
    • Shows how individual profit maximization leads to the free-rider problem.

    Common Pool Resources

    Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Commons: Fishery

    Key Learning Objectives:

    • Individual profit maximization leads to overuse of a common-pool resource.
    • Communication and repeat-play may lead to better outcomes than predicted on standard theory.

    Government Interventions in Competitive Markets

    Textbook Chapter: Chapter 10 (Microeconomics)

    MobLab Game: Competitive Market

    Key Learning Objectives:

    • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilibrium outcomes.
    • Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
    • The difference between tax incidence and who pays the tax.
    • Relative elasticities determine incidence of a tax or subsidy.
    • Excess supply (price floors) and excess demand (price ceilings).
    • The efficiency implications of government interventions.

    Monopoly Pricing

    Textbook Chapter: Chapter 12 (Microeconomics)

    MobLab Game: Cournot (with Group Size=1)

    Key Learning Objectives:

    • Monopolies restrict output in order to increase price.
    • The tension between the quantity price effects of increased output.

    Game Theory

    Textbook Chapter: Chapter 13 (Microeconomics)

    MobLab Game: Prisoner’s Dilemma

    Key Learning Objectives:

    • Key features of games: payoff matrices, best responses and dominant strategies.
    • Identification of the Nash equilibrium.
    • The (sometimes) conflicting incentives of cooperation and self-interest.
    • Repeated play may lead to more cooperative outcomes.

    Oligopoly

    Textbook Chapter: Chapter 14 (Microeconomics)

    MobLab Game: Bertrand Competition

    Key Learning Objectives:

    • When selling an undifferentiated product without capacity constraints, firms have strong short-run incentives to engage in vigorous price competition.
    • Marginal-cost pricing may arise in markets with as few as two firms.
    • Repeat interaction may lead to collusive behavior.

    Tradeoffs Involving Risk and Time

    Textbook Chapter: Chapter 15 (Microeconomics)

    MobLab Game: Risk Preferences: Bomb-Risk Game

    Key Learning Objectives:

    • Helps the player understand expected value and thinking on the margin.
    • Helps a player understand her own preferences towards risk, and how risk attitudes vary across a population.

    Asymmetric Information (Adverse Selection)

    Textbook Chapter: Chapter 16 (Microeconomics)

    MobLab Game: Market for Lemons

    Key Learning Objectives:

    • Experience in a market with asymmetric information.
    • Asymmetric information may lead to adverse selection and market failure.

    Auctions

    Textbook Chapter: Chapter 17 (Microeconomics)

    MobLab Game: Private Value Sealed Bid Auction

    Key Learning Objectives:

    • Gain bidding experience.
    • Shows the equivalence between the first and second-price auctions.
    Demand, Supply and Equilibrium

    Textbook Chapter: Chapter 4 (Microeconomics & Macroeconomics)

    MobLab Game: Competitive Market

    Key Learning Objectives:

    • The “invisible hand” of the market: how individual profit maximization leads to competitive market equilibrium.
    • Price discovery: the equilibrium market-clearing price results from the valuations of different buyers and costs of different sellers.
    • Gains from trade (i.e., consumer and producer surplus).
    • Shifts in either supply or demand change equilibrium outcomes.

    Sellers and Incentives

    Textbook Chapter: Chapter 6 (Microeconomics)

    MobLab Game: Production, Entry & Exit

    Key Learning Objectives:

    • Short-run profit maximization involves thinking at the margin.
    • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

    MobLab Survey: Mental Accounting: Sunk Costs

    Key Learning Objectives:

    • Surplus maximization requires ignoring sunk costs.
    • Easier said than done!

    Trade

    Textbook Chapter: Chapter 8 (Microeconomics)

    MobLab Game: Comparative Advantagep>Textbook Chapter: Chapter 9 (Microeconomics)

    MobLab Game: Public Good: Discrete (Threshold)

    Key Learning Objectives:

    • Individual profit maximization leads to overuse of a common-pool resource.
    • Communication and repeat-play may lead to better outcomes than predicted on standard theory.

    Government Interventions in Competitive Markets

    Textbook Chapter: Chapter 10 (Microeconomics)

    MobLab Game: Competitive Market

    Key Learning Objectives:

    • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilibrium outcomes.
    • Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
    • The difference between tax incidence and who pays the tax.
    • Relative elasticities determine incidence of a tax or subsidy.
    • Excess supply (price floors) and excess demand (price ceilings).
    • The efficiency implications of government interventions.

    Monopoly Pricing

    Textbook Chapter: Chapter 12 (Microeconomics)

    MobLab Game: Cournot (with Group Size=1)

    Key Learning Objectives:

    • Monopolies restrict output in order to increase price.
    • The tension between the quantity price effects of increased output.

    Game Theory

    Textbook Chapter: Chapter 13 (Microeconomics)

    MobLab Game: Prisoner’s Dilemma

    Key Learning Objectives:

    • Key features of games: payoff matrices, best responses and dominant strategies.
    • Identification of the Nash equilibrium.
    • The (sometimes) conflicting incentives of cooperation and self-interest.
    • Repeated play may lead to more cooperative outcomes.

    Oligopoly

    Textbook Chapter: Chapter 14 (Microeconomics)

    MobLab Game: Bertrand Competitionvolving Risk and Time

    Textbook Chapter: Chapter 15 (Microeconomics)

    MobLab Game: Risk Preferences: Bomb-Risk Gameformation may lead to adverse selection and market failure.

    Auctions

    Textbook Chapter: Chapter 17 (Microeconomics)

    MobLab Game: Private Value Sealed Bid Auction

    Key Learning Objectives:

    • Gain bidding experience.
    • Shows the equivalence between the first and second-price auctions.

    Bargaining

    Textbook Chapter: Chapters 17 & 18 (Microeconomics)

    MobLab Game: Ultimatum Game

    Key Learning Objectives:

    • Demonstrates how social norms such as fairness and altruism may result in behaviors that deviate from game theoretic predictions.

    Trust and Fairness

    Textbook Chapter: Chapter 18 (Microeconomics)

    MobLab Game: Trust Game

    Key Learning Objectives:

    • Highlights potential gains from trade arising from trust and trustworthiness.
    • Allow players to explore issues concerning fairness and reciprocity.

    Unemployment

    Textbook Chapter: Chapter 9 (Macroeconomics)

    MobLab Game: Simple Labor Market