Equity and Fairness Concerns – The Ultimatum Game is a classic game to highlight equity and fairness concerns. It can be a great launching point to discuss how individuals evaluate outcomes and whether they are willing to incur a cost to preserve norms. The example result from a managerial economics course below shows almost all proposers offered splits more generous than predicted by the subgame-perfect equilibria.
Picture 1: Game interface and chart depicting amount offered per period
Reputation and Trust – The Trust Game has been a foundational game in organizational economics because, “Trust within organizations increases efficiency by lower monitoring costs (e.g. Frank, 1988), lowering turnover (Dirks & Ferrin, 2002), and increasing uncompensated positive behavior from employees (Dirks & Ferrin, 2002; Konovsky & Pugh, 1994).” (Johnson and Mislin, 2011). In essence, increased trust lowers transaction costs. Use the MobLab results graph to spark discussion among your students about their insights into trustworthy behavior and positive reciprocity.
Picture 2: Game interface and chart depicting amount invested and amount returned with two lines (x=y, best-fit for actual amounts returned)
Risk Preferences – The Bomb Risk Elicitation Task (Crosetto and Filippin, 2013) is a straight-forward way to measure a student’s risk preferences. A bomb is randomly placed in one of 100 boxes, and each student chooses the number of boxes she will open. She earns zero if the bomb is in one of the opened boxes. Otherwise, her payoff equals the number of boxes she opened. Individuals differ in their tolerance for risk (there is no “right” answer). Risk preferences displayed is this game may predict behavior in other risky environments (e.g., a MobLab first-price auction).
Picture 3: Game interface and density plot depicting students risk preferences (stopping points)
Whether you’re teaching in person, online, or both, MobLab has got you covered with economics games for interactive learning and engagement. Get in touch with our team to learn more, click here to schedule a one on one demo meeting.