! BackKarlan & Morduch: Economics

Fdownload### The Power of Economics

### Markets

### Government Intervention

### Consumer Behavior

### Behavioral Economics

### Monopoly and Oligopoly Pricing

### Oligopoly and Collusion

### Externalities

### PublicTeaching Points:

### Markets

### Government Intervention

### Consumer Behavior

### Behavioral Economics

### Monopoly and Oligopoly Pricing

### Oligopoly and Collusion

### Externalities

### PublicTeaching Points:

### Markets

### Government Intervention

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

### Oligopoly and Collusion

### Labor Markets

### Labor Markets

### Markets

### Government Intervention

### Consumer Behavior

### Behavioral Economics

### Monopoly and Oligopoly Pricing

### Oligopoly and Collusion

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.

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.

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.

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 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.*

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.

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.

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.

- 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 3-5

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.

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.

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 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.

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.

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.

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.

- 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 3-5

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.

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:

- 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:

- 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:

- 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:

- 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.

### 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.

### 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:

- 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.

### Behavioral Economics

Textbook Chapter: Chapter 8

MobLab Game: Ultimatum and Dictator

Key Teaching Points:

*

*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:

- 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:

- 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:

- 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.

### Behavioral Economics

Textbook Chapter: Chapter 8

MobLab Game: Ultimatum and Dictator

Key Teaching Points:

### 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:

### 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.

### Public/h3>

Textbook Chapter: Chapter 8

MobLab Game: Ultimatum and Dictator

Key Teaching Points:

### 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.

### Behavioral Economics

Textbook Chapter: Chapter 8

MobLab Game: Ultimatum and Dictator

Key Teaching Points:

### 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.

### 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.

### Behavioral Economics

Textbook Chapter: Chapter 8

MobLab Game: Ultimatum and Dictator

Key Teaching Points:

### 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.

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.

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.

Textbook Chapter: Chapter 26-27

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

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.

Textbook Chapter: Chapter 3-5

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 6

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 7

MobLab Game: Cobb Douglas Utility Maximization

Key Teaching Points:

- Become familiar with the Cobb Douglas utility function.

Textbook Chapter: Chapter 8

MobLab Game: Ultimatum and Dictator

Key Teaching Points:

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.

Textbook Chapter: Chapter 13

MobLab Game: Cournot