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The Power of Economics

Textbook Chapter: Chapter 1-2

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.

Markets

Textbook Chapter: Chapter 3-5

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.

Government Intervention

Textbook Chapter: Chapter 6

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.

Consumer Behavior

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.

Behavioral Economics

Textbook Chapter: Chapter 8

MobLab Game: Ultimatum and Dictator

Key Teaching Points:

  • Preferences for fairness may lead a responder to reject a proposal she finds unfair even if it means losing money. Anticipating this, and perhaps also motivated by altruism or fairness, proposers propose splits more generous than predicted by the subgame-perfect equilibria.

*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.

Monopoly and Oligopoly Pricing

Textbook Chapter: Chapter 13-15

MobLab Game: Cournot (with Group Size=1)

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.

Oligopoly and Collusion

Textbook Chapter: Chapter 13

MobLab Game: Cournot

Key Teaching Points:

  • 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.

Externalities

Textbook Chapter: Chapter 18

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.

PublicTeaching 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.

Markets

Textbook Chapter: Chapter 3-5

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.

Government Intervention

Textbook Chapter: Chapter 6

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.

Consumer Behavior

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.

Behavioral Economics

Textbook Chapter: Chapter 8

MobLab Game: Ultimatum and Dictator

Key Teaching Points:

  • Preferences for fairness may lead a responder to reject a proposal she finds unfair even if it means losing money. Anticipating this, and perhaps also motivated by altruism or fairness, proposers propose splits more generous than predicted by the subgame-perfect equilibria.

*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.

Monopoly and Oligopoly Pricing

Textbook Chapter: Chapter 13-15

MobLab Game: Cournot (with Group Size=1)

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.

Oligopoly and Collusion

Textbook Chapter: Chapter 13

MobLab Game: Cournot

Key Teaching Points:

  • 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.

Externalities

Textbook Chapter: Chapter 18

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.

PublicTeaching 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.

Markets

Textbook Chapter: Chapter 3-5

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.

Government Intervention

Textbook Chapter: Chapter 6

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 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.

    Markets

    Textbook Chapter: Chapter 3-5

    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.

    Government Intervention

    Textbook Chapter: Chapter 6

    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 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.

      Markets

      Textbook Chapter: Chapter 3-5

      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.

      Government Intervention

      Textbook Chapter: Chapter 6

      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.

      Consumer Behavior

      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.

      Behavioral Economics

      Textbook Chapter: Chapter 8

      MobLab Game: Ultimatum and Dictator

      Key Teaching Points:

      • Preferences for fairness may lead a responder to reject a proposal she finds unfair even if it means losing money. Anticipating this, and perhaps also motivated by altruism or fairness, proposers propose splits more generous than predicted by the subgame-perfect equilibria.

      *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.

      Monopoly and Oligopoly Pricing

      Textbook Chapter: Chapter 13-15

      MobLab Game: Cournot (with Group Size=1)

      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.

      Oligopoly and Collusion

      Textbook Chapter: Chapter 13

      MobLab Game: Cournot

      Key Teaching Points:

      • The underlying logic of the Cournot model: how market price is deterf these help illustrate departures from the standard rational-choice model.

        Monopoly and Oligopoly Pricing

        Textbook Chapter: Chapter 13-15

        MobLab Game: Cournot (with Group Size=1)

        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.

        Oligopoly and Collusion

        Textbook Chapter: Chapter 13

        MobLab Game: Cournot

        Key Teaching Points:

        • The underlying logic of the Cournot model: how market price is deterf these help illustrate departures from the standard rational-choice model.

          Monopoly and Oligopoly Pricing

          Textbook Chapter: Chapter 13-15

          MobLab Game: Cournot (with Group Size=1)

          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.

          Oligopoly and Collusion

          Textbook Chapter: Chapter 13

          MobLab Game: Cournotics, and biases with their students including representativeness, anchoring, availability, and more. Each of these help illustrate departures from the standard rational-choice model.

          Monopoly and Oligopoly Pricing

          Textbook Chapter: Chapter 13-15

          MobLab Game: Cournot (with Group Size=1)

          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.

          Oligopoly and Collusion

          Textbook Chapter: Chapter 13

          MobLab Game: Cournot

          Key Teaching Points:

          • The underlying logic of the Cournot model: how market prichifts in either supply or demand change equilibrium outcomes.

          Government Intervention

          Textbook Chapter: Chapter 6

          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.

          Consumer Behavior

          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.

          Behavioral Economics

          Textbook Chapter: Chapter 8

          MobLab Game: Ultimatum and Dictator

          Key Teaching Points:

          • Preferences for fairness may lead a responder to reject a proposal she finds unfair even if it means losing money. Anticipating this, and perhaps also motivated by altruism or fairness, proposers propose splits more generous than predicted by the subgame-perfect equilibria.

          *See also our pre-built survey-based experiments to explore framing effects, heuristTeaching 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.

          Markets

          Textbook Chapter: Chapter 3-5

          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).
          • STeaching 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.

            Markets

            Textbook Chapter: Chapter 3-5

            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.

            Government Intervention

            Textbook Chapter: Chapter 6

            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.

            Consumer Behavior

            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.

            Behavioral Economics

            Textbook Chapter: Chapter 8

            MobLab Game: Ultimatum and Dictator

            Key Teaching Points:

            • Preferences for fairness may lead a responder to reject a proposal she finds unfair even if it means losing money. Anticipating this, and perhaps also motivated by altruism or fairness, proposers propose splits more generous than predicted by the subgame-perfect equilibria.

            *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.

            Monopoly and Oligopoly Pricing

            Textbook Chapter: Chapter 13-15

            MobLab Game: Cournot (with Group Size=1)

            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.

            Oligopoly and Collusion

            Textbook Chapter: Chapter 13

            MobLab Game: Cournot

            Key Teaching Points:

            • 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.

            Externalities

            Textbook Chapter: Chapter 18

            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.

            Public/h3>

            Textbook Chapter: Chapter 8

            MobLab Game: Ultimatum and Dictator

            Key Teaching Points:

            • Preferences for fairness may lead a responder to reject a proposal she finds unfair even if it means losing money. Anticipating this, and perhaps also motivated by altruism or fairness, proposers propose splits more generous than predicted by the subgame-perfect equilibria.

            *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.

            Monopoly and Oligopoly Pricing

            Textbook Chapter: Chapter 13-15

            MobLab Game: Cournot (with Group Size=1)

            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.

            Oligopoly and Collusion

            Textbook Chapter: Chapter 13

            MobLab Game: Cournot

            Key Teaching Points:

            • 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.

            Externalities

            Textbook Chapter: Chapter 18

            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.

            Public/h3>

            Textbook Chapter: Chapter 8

            MobLab Game: Ultimatum and Dictator

            Key Teaching Points:

            • Preferences for fairness may lead a responder to reject a proposal she finds unfair even if it means losing money. Anticipating this, and perhaps also motivated by altruism or fairness, proposers propose splits more generous than predicted by the subgame-perfect equilibria.

            *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.

            Monopoly and Oligopoly Pricing

            Textbook Chapter: Chapter 13-15

            MobLab Game: Cournot (with Group Size=1)

            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.

            Oligopoly and Collusion

            Textbook Chapter: Chapter 13

            MobLab Game: Cournotence between tax incidence and who pays the tax.

          • Relative elasticity determine incidence of a tax or subsidy.

          Consumer Behavior

          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.

          Behavioral Economics

          Textbook Chapter: Chapter 8

          MobLab Game: Ultimatum and Dictator

          Key Teaching Points:

          • Preferences for fairness may lead a responder to reject a proposal she finds unfair even if it means losing money. Anticipating this, and perhaps also motivated by altruism or fairness, proposers propose splits more generous than predicted by the subgame-perfect equilibria.

          *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.

          Monopoly and Oligopoly Pricing

          Textbook Chapter: Chapter 13-15

          MobLab Game: Cournot (with Group Size=1)

          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.

          Oligopoly and Collusion

          Textbook Chapter: Chapter 13

          MobLab Game: Cournot

          Key Teaching Points:

          • 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.

          Externalities

          Textbook Chapter: Chapter 18

          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.

          Public Goods

          Textbook Chapter: Chapter 19

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

          Labor Markets

          Textbook Chapter: Chapter 26-27

          MobLab Game: Simple Labor Market

          Key Teaching Points:

          • When a peence between tax incidence and who pays the tax.
          • Relative elasticity determine incidence of a tax or subsidy.

          Consumer Behavior

          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.

          Behavioral Economics

          Textbook Chapter: Chapter 8

          MobLab Game: Ultimatum and Dictator

          Key Teaching Points:

          • Preferences for fairness may lead a responder to reject a proposal she finds unfair even if it means losing money. Anticipating this, and perhaps also motivated by altruism or fairness, proposers propose splits more generous than predicted by the subgame-perfect equilibria.

          *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.

          Monopoly and Oligopoly Pricing

          Textbook Chapter: Chapter 13-15

          MobLab Game: Cournot (with Group Size=1)

          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.

          Oligopoly and Collusion

          Textbook Chapter: Chapter 13

          MobLab Game: Cournot

          Key Teaching Points:

          • 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 collussion

Textbook Chapter: Chapter 13

MobLab Game: Cournot

Key Teaching Points:

  • 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 collussion

Textbook Chapter: Chapter 13

MobLab Game: Cournotrder 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.
  • Oligopoly and Collusion

    Textbook Chapter: Chapter 13

    MobLab Game: Cournot

    Key Teaching Points:

    • The underlying logic of the Cournot model: how market pricrder 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.

    Oligopoly and Collusion

    Textbook Chapter: Chapter 13

    MobLab Game: Cournotame: 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.
    • Shows how individual profit maximization leads to the free-rider problem.

    Labor Markets

    Textbook Chapter: Chapter 26-27

    MobLab Game: Simple Labor Market how individual profit maximization leads to the free-rider problem.

    Labor Markets

    Textbook Chapter: Chapter 26-27

    MobLab Game: Simple Labor Market

    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.

    Markets

    Textbook Chapter: Chapter 3-5

    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.

    Government Intervention

    Textbook Chapter: Chapter 6

    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.

    Consumer Behavior

    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.

    Behavioral Economics

    Textbook Chapter: Chapter 8

    MobLab Game: Ultimatum and Dictator

    Key Teaching Points:

    • Preferences for fairness may lead a responder to reject a proposal she finds unfair even if it means losing money. Anticipating this, and perhaps also motivated by altruism or fairness, proposers propose splits more generous than predicted by the subgame-perfect equilibria.

    *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.

    Monopoly and Oligopoly Pricing

    Textbook Chapter: Chapter 13-15

    MobLab Game: Cournot (with Group Size=1)

    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.

    Oligopoly and Collusion

    Textbook Chapter: Chapter 13

    MobLab Game: Cournot