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Gains from Trade and International Trade

MobLab Game: Comparative Advantageimpact of repeat interaction.

Oligopoly Behavior in a Game Theory Setting

MobLab Game: Prisoner’s Dilemma (Matrix) and Prisoner’s Dilemma (Push and Pull)

Key Teaching Points:

  • Shows the conflicting incentives of cooperation and self-interest.
  • Gain familiarity with reading payoff matrices and the key concept of a dominant strategy.
  • Identification of Nash equilibrium.
  • Demonstrates that repeat play can leailibrium.
  • Show that the competitive-market equilibrium maximizes total surplus (absent external costs or benefits).
  • Explore how shifts in supply and demand alter equilibrium predictions.

Market Interventions

MobLab Game: Competitive Market with Interventions

Key Teaching Points:

  • Demonstrate the equilibrium and surplus effects of common government interventions: per-unit taxes and subsidies, price ceilings and floors.

Long Run Equilibrium

MobLab Game: Production, Entry & Exit

Key Teaching Points:

  • Short-run profit maximization involves thinking at the margin.
  • Show how firm entry and exit decisions are affected by the decisions in the previous round, and if the market entrants earned a profit or not.
  • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

Monopoly

MobLab Game: Monopoly

Key Teaching Points:

  • Review the effects of market quantity on price.
  • Profit maximization involves thinking on the margin.
  • Compare output and price to under monopoly to the perfectly competitive market.

Oligopoly and Collusion

MobLab Game: Cournot

Key Teaching Points:

  • Experience profit maximization when there is strategic interdependence.
  • Gain an understanding of the underlying logic of the Cournot model; how market price is determined by the aggregation of simultaneous output.
  • Observe the Cournot equilibrium and the fit maximization leads to competitive-market equfit maximization leads to competitive-market equilibrium.
  • Show that the competitive-market equilibrium maximizes total surplus (absent external costs or benefits).
  • Explore how shifts in supply and demand alter equilibrium predictions.

Market Interventions

MobLab Game: Competitive Market with Interventions

Key Teaching Points:

  • Demonstrate the equilibrium and surplus effects of common government interventions: per-unit taxes and subsidies, price ceilings and floors.

Long Run Equilibrium

MobLab Game: Production, Entry & Exit

Key Teaching Points:

  • Short-run profit maximization involves thinking at the margin.
  • Show how firm entry and exit decisions are affected by the decisions in the previous round, and if the market entrants earned a profit or not.
  • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

Monopoly

MobLab Game: Monopoly

Key Teaching Points:

  • Review the effects of market quantity on price.
  • Profit maximization involves thinking on the margin.
  • Compare output and price to under monopoly to the perfectly competitive market.

Oligopoly and Collusion

MobLab Game: Cournot

Key Teaching Points:

  • Experience profit maximization when there is strategic interdependence.
  • Gain an understanding of the underlying logic of the Cournot model; how market price is determined by the aggregation of simultaneous output.
  • Observe the Cournot equilibrium and the impact of repeat interaction.

Oligopoly Behavior in a Game Theory Setting

MobLab Game: Prisoner’s Dilemma (Matrix) and Prisoner’s Dilemma (Push and Pull)

Key Teaching Points:

  • Shows the conflicting incentives of cooperation and self-interest.
  • Gain familiarity with reading payoff matrices and the key concept of a dominant strategy.
  • Identification of Nash equilibrium.
  • Demonstrates that repeat play can lead to more cooperative outcomes.

Push and Pull is a non-matrix version of the Prisoner’s Dilemma.

Externalities

MobLab Game: Externalities with Policy Intervention

Key Teaching Points:

  • Show a divergence between market price and quantity and the socially optimal price and quantity for an externality-generating good.
  • Explore interventions like tax, subsidy, and tradable permits for externality generating goods.

Public Goods and Free Riding

MobLab Game: Public Goods: Linear

Key Teaching Points:

  • Highlights the features of public goods: non-rival and non-excludable.
  • Shows the tension between individual and group welfare.
  • Experience the free-rider problem.

Common-Pool Resources

MobLab Game: Commons: Fisheryn.

  • Show how firm entry and exit decisions are affected by the decisions in the previous round, and if the market entrants earned a profit or not.
  • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.
  • Monopoly

    MobLab Game: Monopoly

    Key Teaching Points:

    • Review the effects of market quantity on price.
    • Profit maximization involves thinking on the margin.
    • Compare output and price to under monopoly to the perfectly competitive market.

    Oligopoly and Collusion

    MobLab Game: Cournot

    Key Teaching Points:

    • Experience profit maximization when there is strategic interdependence.
    • Gain an understanding of the underlying logic of the Cournot model; how market price is determined by the aggregation of simultaneous output.
    • Observe the Cournot equilibrium and the impact of repeat interaction.

    Oligopoly Behavior in a Game Theory Setting

    MobLab Game: Prisoner’s Dilemma (Matrix) and Prisoner’s Dilemma (Push and Pull)

    Key Teaching Points:

    • Shows the conflicting incentives of cooperation and self-interest.
    • Gain familiarity with reading pn.
    • Show how firm entry and exit decisions are affected by the decisions in the previous round, and if the market entrants earned a profit or not.
    • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

    Monopoly

    MobLab Game: Monopoly

    Key Teaching Points:

    • Review the effects of market quantity on price.
    • Profit maximization involves thinking on the margin.
    • Compare output and price to under monopoly to the perfectly competitive market.

    Oligopoly and Collusion

    MobLab Game: Cournot

    Key Teaching Points:

    • Experience profit maximization when there is strategic interdependence.
    • Gain an understanding of the underlying logic of the Cournot model; how market price is determined by the aggregation of simultaneous output.
    • Observe the Cournot equilibrium and the impact of repeat interaction.

    Oligopoly Behavior in a Game Theory Setting

    MobLab Game: Prisoner’s Dilemma (Matrix) and Prisoner’s Dilemma (Push and Pull)

    Key Teaching Points:

    • Shows the conflicting incentives of cooperation and self-interest.
    • Gain familiarity with reading payoff matrices and the key concept of a dominant strategy.
    • Identification of Nash equilibrium.
    • Demonstrates that repeat play can lead to more cooperative outcomes.

    Push and Pull is a non-matrix version of the Prisoner’s Dilemma.

    Externalities

    MobLab Game: Externalities with Policy Intervention

    Key Teaching Points:

    • Show a divergence between market price and quantity and the socially optimal price and
    • Compare output and price to under monopoly to the perfectly competitive market.

    Oligopoly and Collusion

    MobLab Game: Cournot

    Key Teaching Points:

    • Experience profit maximization when there is strategic interdependence.
    • Gain an understanding of the underlying logic of the Cournot model; how market price is determined by the aggregation of simultaneous output.
    • Observe the Cournot equilibrium and the impact of repeat interaction.

    Oligopoly Behavior in a Game Theory Setting

    MobLab Game: Prisoner’s Dilemma (Matrix) and Prisoner’s Dilemma (Push and Pull)

    Key Teaching Points:

    • Shows the conflicting incentives of cooperation and self-interest.
    • Gain familiarity with reading payoff matrices and the key concept of a dominant strategy.
    • Identification of Nash equilibrium.
    • Demonstrates that repeat play can lead to more cooperative outcomes.

    Push and Pull is a non-matrix version of the Prisoner’s Dilemma.

    Externalities

    MobLab Game: Externalities with Policy Intervention

    Key Teaching Points:

    • Show a divergence between market price and quantity and the socially optimal price and
    • Compare output and price to under monopoly to the perfectly competitive market.

    Oligopoly and Collusion

    MobLab Game: Cournoton-making process for economic actors.