! BackFrank, Bernanke, Antonovics & Heffetz: Principles of Economics

Fdownload### Comparative Advantages

### Supply and Demand

### Efficiency, Exchange and the Invisible Hand in Action

### Monopoly and Oligopoly

### Games and Strategic Behavior

### Externalities

### The Economics of Information

### Monopoly and Oligopoly

### Games and Strategic Behavior

### Externalities

### The Economics of Information

### This game introduces students to a classic market with asymmetric information: one side has payoff-relevant information (car quality) that the other side wishes it had.
**
**Markets where one side’s type is not observable to the other side of the market can lead to adverse selection where only the worst types (low-quality cars in this case) are transacted.Labor Markets

### Consumer Behavior

### Comparative Advantages

### Supply and Demand

### Efficiency, Exchange and the Invisible Hand in Action

### Monopoly and Oligopoly

### Games and Strategic Behavior

### Externalities

### The Economics of Information

### This game introduces students to a classic market with asymmetric information: one side has payoff-relevant information (car quality) that the other side wishes it had.
**
**Markets where one side’s type is not observable to the other side of the market can lead to adverse selection where only the worst types (low-quality cars in this case) are transacted.Labor Markets

### Consumer Behavior

### Comparative Advantages

### Supply and Demand

### Efficiency, Exchange and the Invisible Hand in Action

### Monopoly and Oligopoly

### Games and Strategic Behavior

### Externalities

### The Economics of Information

### Comparative Advantages

### Supply and Demand

### Efficiency, Exchange and the Invisible Hand in Action

### Monopoly and Oligopoly

### Games and Strategic Behavior

### Externalities

### The Economics of Information

### This game introduces students to a classic market with asymmetric information: one side has payoff-relevant information (car quality) that the other side wishes it had.
**
**Markets where one side’s type is not observable to the other side of the market can lead to adverse selection where only the worst types (low-quality cars in this case) are transacted.Labor Markets

### Consumer Behavior

### Public Goods

Textbook Chapter: Chapter 2

MobLab Game: Comparative Advantages

Key Teaching Points:

- 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.

Textbook Chapter: Chapter 3

MobLab Game: Competitive Markets

Key Teaching Points:

- 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.

Textbook Chapter: Chapter 7

MobLab Game: Competitive Markets with Interventions

Key Teaching Points:

- 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 elasticity determine incidence of a tax or subsidy.

Textbook Chapter: Chapter 8

MobLab Game: Cournot (with Group Size=1, 2, 3, or 8)

Key Teaching Points:

- Monopolies restrict output in order to increase price.
- The tension between the quantity price effects of increased output.
- The underlying logic of the Cournot model: how market price is determined by aggregate output.
- The equilibrium outcomes of Cournot competition.
- Repeat interaction may lead to collusive behavior.

Textbook Chapter: Chapter 9

MobLab Game: Prisoner’s Dilemma

Key Teaching Points:

- 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.

Textbook Chapter: Chapter 10

MobLab Game: Externalities with Policy Interventions

Key Teaching Points:

- 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
- Marketable permits for an activity generating a negative externality leads to efficiently reducing that activity.

Textbook Chapter: Chapter 11

MobLab Game: Market for Lemonss (low-quality cars in this case) are transacted.Labor Markets

Textbook Chapter: Chapter 14

MobLab Game: Simple Labor Marketey Teaching Points:

- 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 elasticity determine incidence of a tax or subsidy.

Textbook Chapter: Chapter 8

MobLab Game: Cournot (with Group Size=1, 2, 3, or 8)

Key Teaching Points:

- Monopolies restrict output in order to increase price.
- The tension between the quantity price effects of increased output.
- The underlying logic of the Cournot model: how market price is determined by aggregate output.
- The equilibrium outcomes of Cournot competition.
- Repeat interaction may lead to collusive behavior.

Textbook Chapter: Chapter 9

MobLab Game: Prisoner’s Dilemma

Key Teaching Points:

- 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.

Textbook Chapter: Chapter 10

MobLab Game: Externalities with Policy Interventions

Key Teaching Points:

- 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
- Marketable permits for an activity generating a negative externality leads to efficiently reducing that activity.

Textbook Chapter: Chapter 11

MobLab Game: Market for Lemons

Key Teaching Points:

Textbook Chapter: Chapter 14

MobLab Game: Simple Labor Market

Key Teaching Points:

- When a perfectly competitive market determines wages, the equilibrium wage (per unit of labor) is equal to the value of the marginal product of labor of the last worker hired.

Textbook Chapter: Chapter 7

MobLab Game: Cobb Douglas Utility Maximization

Key Teaching Points:

- Become familiar with the Cobb Douglas utility function.
- Monotonic transformations of a utility function do not affect the utility-maximizing consumption bundle.
- Utility maximization can be achieved by sequentially choosing the item with the highest marginal utility per dollar.

**See also our pre-built survey-based experiments to explore framing effects, heuristics, and biases with their students including representativeness, anchoring, availability, and more. Each of these help illustrate departures from the standard rational-choice model.*

Textbook Chapter: Chapter 2

MobLab Game: Comparative Advantages

Key Teaching Points:

- 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.

Textbook Chapter: Chapter 3

MobLab Game: Competitive Markets

Key Teaching Points:

- 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.

Textbook Chapter: Chapter 7

MobLab Game: Competitive Markets with Interventions

Key Teaching Points:

- 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 elasticity determine incidence of a tax or subsidy.

Textbook Chapter: Chapter 8

MobLab Game: Cournot (with Group Size=1, 2, 3, or 8)

Key Teaching Points:

- Monopolies restrict output in order to increase price.
- The tension between the quantity price effects of increased output.
- The underlying logic of the Cournot model: how market price is determined by aggregate output.
- The equilibrium outcomes of Cournot competition.
- Repeat interaction may lead to collusive behavior.

Textbook Chapter: Chapter 9

MobLab Game: Prisoner’s Dilemma

Key Teaching Points:

- 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.

Textbook Chapter: Chapter 10

MobLab Game: Externalities with Policy Interventions

Key Teaching Points:

- 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
- Marketable permits for an activity generating a negative externality leads to efficiently reducing that activity.

Textbook Chapter: Chapter 11

MobLab Game: Market for Lemons

Key Teaching Points:

Textbook Chapter: Chapter 14

MobLab Game: Simple Labor Market

Key Teaching Points:

- When a perfectly competitive market determines wages, the equilibrium wage (per unit of labor) is equal to the value of the marginal product of labor of the last worker hired.

Textbook Chapter: Chapter 7

MobLab Game: Cobb Douglas Utility Maximization

Key Teaching Points:

- Become familiar with the Cobb Douglas utility function.
- Monotonic transformations of a utility function do not affect the utility-maximizing consumption bundle.
- Utility maximization can be achieved by sequentially choosing the item with the highest marginal utility per dollar.

**See also our pre-built survey-based experiments to explore framing effects, heuristics, and biases with their students including representativeness, anchoring, availability, and more. Each of these help illustrate departures from the standard rational-choice model.*

Textbook Chapter: Chapter 2

MobLab Game: Comparative Advantages

Key Teaching Points:

- 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.

Textbook Chapter: Chapter 3

MobLab Game: Competitive Markets

Key Teaching Points:

- 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.

Textbook Chapter: Chapter 7

MobLab Game: Competitive Markets with Interventions

Key Teaching Points:

- Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
- The difference between tax incidence and who pays the tax.
- Relative elasticity determine incidence of a tax or subsidy.

Textbook Chapter: Chapter 8

MobLab Game: Cournot (with Group Size=1, 2, 3, or 8)

Key Teaching Points:

- Monopolies restrict output in order to increase price.
- The tension between the quantity price effects of increased output.
- The underlying logic of the Cournot model: how market price is determined by aggregate output.
- The equilibrium outcomes of Cournot competition.
- Repeat interaction may lead to collusive behavior.

Textbook Chapter: Chapter 9

MobLab Game: Prisoner’s Dilemma

Key Teaching Points:

- 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.

Textbook Chapter: Chapter 10

MobLab Game: Externalities with Policy Interventions

Key Teaching Points:

- With externalities, the equilibrium of a competitive market without interventions is inefficient.

Textbook Chapter: Chapter 11

MobLab Game: Market for Lemons

Textbook Chapter: Chapter 2

MobLab Game: Comparative Advantages

Key Teaching Points:

- 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.

Textbook Chapter: Chapter 3

MobLab Game: Competitive Markets

Key Teaching Points:

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

Textbook Chapter: Chapter 7

MobLab Game: Competitive Markets with Interventions

Key Teaching Points:

- Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
- The difference between tax incidence and who pays the tax.
- Relative elasticity determine incidence of a tax or subsidy.

Textbook Chapter: Chapter 8

MobLab Game: Cournot (with Group Size=1, 2, 3, or 8)

Key Teaching Points:

- Monopolies restrict output in order to increase price.
- The tension between the quantity price effects of increased output.
- The underlying logic of the Cournot model: how market price is determined by aggregate output.
- The equilibrium outcomes of Cournot competition.
- Repeat interaction may lead to collusive behavior.

Textbook Chapter: Chapter 9

MobLab Game: Prisoner’s Dilemma

Key Teaching Points:

- 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.

Textbook Chapter: Chapter 10

MobLab Game: Externalities with Policy Interventions

Key Teaching Points:

- With externalities, the equilibrium of a competitive market without interventions is inefficient.

Textbook Chapter: Chapter 11

MobLab Game: Market for Lemons

Key Teaching Points:

Textbook Chapter: Chapter 14

MobLab Game: Simple Labor Market

Key Teaching Points:

- When a perfectly competitive market determines wages, the equilibrium wage (per unit of labor) is equal to the value of the marginal product of labor of the last worker hired.

Textbook Chapter: Chapter 7

MobLab Game: Cobb Douglas Utility Maximization

Key Teaching Points:

- Become familiar with the Cobb Douglas utility function.
- Monotonic transformations of a utility function do not affect the utility-maximizing consumption bundle.
- Utility maximization can be achieved by sequentially choosing the item with the highest marginal utility per dollar.

**See also our pre-built survey-based experiments to explore framing effects, heuristics, and biases with their students including representativeness, anchoring, availability, and more. Each of these help illustrate departures from the standard rational-choice model.*

Textbook Chapter: Chapter 14

MobLab Game: Linear Public Good

Key Teaching Points:

- Highlights the features of public goods: non-rival and non-excludable.
- Demonstrates the distinction between private and social benefits of public goods.Comparative Advantages
Textbook Chapter: Chapter 2

MobLab Game: Comparative Advantages

Key Teaching Points:

- 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.

### Supply and Demand

Textbook Chapter: Chapter 3

MobLab Game: Competitive Markets

Key Teaching Points:

- Price discovery: the equilibrium market-clearing price results from the valuations of different
### Comparative Advantages

Textbook Chapter: Chapter 2

MobLab Game: Comparative Advantages

Key Teaching Points:

- 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.

### Supply and Demand

Textbook Chapter: Chapter 3

MobLab Game: Competitive Markets

Key Teaching Points:

- Price discovery: the equilibrium market-clearing price results from the valuations of different
### Comparative Advantages

Textbook Chapter: Chapter 2

MobLab Game: Comparative Advantages

Key Teaching Points:

- 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.

### Supply and Demand

Textbook Chapter: Chapter 3

MobLab Game: Competitive Markets

Key Teaching Points:

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

### Efficiency, Exchange and the Invisible Hand in Action

Textbook Chapter: Chapter 7

MobLab Game: Competitive Markets with Interventions

Key Teaching Points:

- Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
- The difference between tax incidence and who pays the tax.
- Relative elasticity determine incidence of a tax or subsidy.

### Monopoly and Oligopoly

Textbook Chapter: Chapter 8

MobLab Game: Cournot (with Group Size=1, 2, 3, or 8)

Key Teaching Points:

- Monopolies restrict output in order to increase price.
- The tension between the quantity price effects of increased output.
- The underlying logic of the Cournot model: how market price is determined by aggregate output.
- The equilibrium outcomes of Cournot competition.
- Repeat interaction may lead to collusive behavior.

### Games and Strategic Behavior

Textbook Chapter: Chapter 9

MobLab Game: Prisoner’s Dilemma

Key Teaching Points:

- 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.

### Externalities

Textbook Chapter: Chapter 10

MobLab Game: Externalities with Policy Interventions

Key Teaching Points:

- With externalities, the equilibrium of a competitive market without interventions is inefficient.

### The Economics of Information

Textbook Chapter: Chapter 11

MobLab Game: Market for Lemons side has payoff-relevant information (car quality) that the other side wishes it had.

Textbook Chapter: Chapter 14

MobLab Game: Simple Labor Marketl benefits of public goods.

- Shows how individual profit maximization leads to the free-rider problem.

### Inflation

Textbook Chapter: Chapter 16

MobLab Game: Interest Rate and Inflation (Loan Market)

Key Teaching Points:

- Supply and demand determines the equilibrium interest rate. Absent investment-return uncertainty, those with the lowest opportunity cost lend to those with the highest real return on investment.
- Speculative asset bubbles can arise even if the asset's dividend distribution and terminal value are common knowledge.

### Financial Markets

Textbook Chapter: Chapter 19

MobLab Game: Asset Market (Bubbles and Crashes)

Key Teaching Points:

- With risk neutral investors, an asset's fundamental value is the present discounted value of expected dividends (plus discounted terminal value, if applicable).
- Speculative asset bubbles can arise even if the asset's dividend distribution and terminal value are common knowledge.