39:
1047:
observe and experience that their pricing decisions are controlled by the market. They would "experience" that in the simulation they would have to lower their firm's price to be competitive as new firms entered the market. In the long-run, they would see the impact of changing plant size. They would observe that the successful firms would take advantage of economies of scale, but would also be careful not to incur
866:
854:
982:. Economic experiments using monopolistic competition simulations can create real-world incentives that may be used in the teaching and learning of economics to help students better understand why markets and other exchange systems work the way they do. An explanation of experimental economics is given by Roth (1995).
962:" (p. 278). This is consistent with the results of a survey published in the American Economic Review by Allgood (2004) that shows that students "rarely take economics as a free elective – especially beyond principles" (p.5). More is needed to be done in the classroom to excite students about economics education.
1051:
in the long-run. Students would experience that economic profits cannot be maintained in the long-run. They would see, first hand, that their accounting profits will inevitably decline and move closer to normal profits. This experience provides students an opportunity to learn (as a supplement to the
1014:
In a simulation of monopolistic competition, each firm must be small in size, and should not be able to influence the direction of the overall market. Yet each firm has some control over price owing to product differentiation. To be consistent with economic theory, the simulation model should allow
974:
Through a simulation game, students may participate directly in a market by managing a simulated firm and making decisions on price and production to maximize profits. An excellent review of the use of a successful market simulation is given by
Motahar (1994) in the Journal of Economics Education.
1060:
A simple baseline economy model has been proposed by M. Lengnick (2013). This model consists of two types of economic actors only: households playing the roles of workers/employees and consumers, and firms playing the roles of employers and producers/suppliers. All firms produce and sell the same
1046:
From an educational point of view, students will have an "opportunity" to learn by their own observations and experience through participation in a simulation game (see
Schmidt, 2003). Consistent with the theoretical model of monopolistic competition (see Baye, 2009), student participants would
937:
states that "a simulation game combines the features of a game (competition, cooperation, rules, participants, roles) with those of a simulation (incorporation of critical features of reality). A game is a simulation game if its rules refer to an empirical model of reality". A properly built
965:
Simulations supplement the standard lecture. Both computerized and non-computer based simulation and games show significant levels of growth in education (see Lean, Moizer, Towler, and Abbey, 2006; Dobbins, Boehlje, Erickson and Taylor, 1995; Gentry, 1990;).
1015:
entry of new firms to occur as long as profits are greater than normal, and economic profits exist. The entry of new firms will decrease the market price, and eventually cause economic profits to return to zero (see Baye, 2009).
959:
teaching practices, which rely heavily on the lecture format, are not doing enough to develop students' cognitive learning skills, attract good students to economics, and motivate them to continue coursework in the
1023:
To simulate monopolistic competition, the controllable firm decisions of the participants (students) must include, at a minimum, those specified in the standard theoretical model, including (see Baye, 2009):
1610:
Fritzche, D., and Cotter, R. (1990). Guidelines for
Administering Business Games, in Guide to Business Gaming and Experiential Learning, edited by Gentry, J., ABSEL, Nichols/GP Publishing, East Brunswick,
1600:
Allgood, S., Bosshardt, W., Van der Klaauw, W., and Watts, M. (2004). What
Students Remember and Say about College Economics Years Later. American Economic Review, 94(2), 259-65.
1061:
abstract consumption good that is bought (and consumed) by households. The model has originally been implemented in Java, but is also available as a web-based simulation.
1381:
1332:
1279:
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in an effort to maximize the approval rating from their population. Exploring the trade-offs of economic policy decision-making and the effects of the global
1068:
published "Macroeconomics
Simulation: Econland". This 30-minute simulation brings economic policy making to life by allowing students to make monetary and
896:
828:
1629:
Simkins, S.P. (1999), Promoting active-student learning using the World Wide Web in economics courses, Journal of
Economic Education, 30(Summer), 278-91.
1617:
Greenlaw, S.A. (1999). Using groupware to enhance teaching and learning in undergraduate economics, Journal of
Economic Education, 30(winter), 33-42.
1109:
1623:
McHaney, R., White, D., Heilman, G. E. (2002). Simulation
Project Success and Failure: Survey Findings, Simulation & Gaming, 33(1), 49-66.
1474:
1165:
Viewpoints on
Learning and Education with Simulation Games in Simulation Games and Learning in Production Management edited by Jens O. Riis
1100:
and learn about economic modeling and system dynamics. The simulation won a Silver Medal at the
International Serious Play Awards.
957:
studies recommend the adoption of more active and collaborative learning methodologies (Greenlaw, 1999). Simkins (1999) stated "…
1620:
Lean, J., Moizer, M., Towler, C. A. (2006). Active Learning in Higher Education, Journal of Simulation and games, 7(3), 227-242.
889:
1346:
Dobbins, C. L., Boehlje, M., Erickson, S., and Taylor, R. (1995). "Using Games to Teach Farm and Agribusiness Management".
1614:
Gentry, J., ed., (1990), Guide to Business Gaming and Experiential Learning, ABSEL, Nichols/GP Publishing, East Brunswick.
489:
227:
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decisions and consider their impact on the economy of a fictional country. Students manage the economy through a 7-year
1241:
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838:
58:
48:
1626:
Mills, B.J. and Cottell, P.G. (1998), Cooperative learning for higher education faculty, Phoenix, Ariz.: Oryx Press
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832:
362:
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242:
978:
A monopolistic competition simulation game can be used as an example in the standard economics classroom or for
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126:
70:
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1447:
Introduction to experimental economics in The Handbook of Experimental Economics by Kagel, J.H. and Roth, A.E
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Simkins, S.P. (1999). "Promoting active-student learning using the World Wide Web in economics courses".
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818:
474:
459:
317:
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Greenlaw, S.A. (1999). "Using groupware to enhance teaching and learning in undergraduate economics".
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on a country, students consolidate their understanding of core macroeconomic concepts, including
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Dobbins, C. L., Boehlje, M., Erickson, S., and Taylor, R. (1995). Using Games to Teach Farm and
994:
needs to incorporate the standard theoretical assumptions of this market structure, including:
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Schmidt, Stephen J. (2003). "Active and cooperative learning using Web-based simulations".
38:
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1410:
Motahar, E. (1994). "Teaching Modeling and Simulation in Economics: A Pleasant Surprise".
910:
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American Economic Association (Resources for Economists) list of tutorials and exercises
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1651:"Association of Business Simulations and Experiential Learning (ABSEL) list of games"
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lecture and readings) the economic messages of monopolistic competition.
1645:
Classroom Experiments & Games: a guide by the Economics Network (UK)
1639:
1431:
1367:
1226:
1195:
1525:
Lengnick, M. (2013). "Agent-based macroeconomics: A baseline model".
1423:
1359:
1242:"What Students Remember and Say about College Economics Years Later"
1240:
Allgood, S.Bosshardt, W., Van der Klaauw, W., and Watts, M. (2004).
1218:
1187:
914:
1607:
Management, Review of Agricultural Economics, 17(3), 247-255.
1399:. ABSEL and Nichols/GP Publishing. ISBN O-89397-369-6.
942:
would closely follow the assumptions and rules of the
1397:Guide to Business Gaming and Experiential Learning
1019:Controllable decisions in monopolistic competition
1527:Journal of Economic Behavior & Organization
1167:. Springer. pp. 14–28. ISBN O-412-72100-7.
1449:. Princeton University Press. pp. 3–109.
890:
8:
1380:: CS1 maint: multiple names: authors list (
1331:: CS1 maint: multiple names: authors list (
1293:Lean, J., Moizer, M., Towler, C. A. (2006).
1278:: CS1 maint: multiple names: authors list (
929:to simulate an aspect of reality, such as a
1467:Managerial Economics and Business Strategy
897:
883:
17:
1110:Category:Economic simulation board games
1469:. McGraw-Hill/Irwin. pp. 294–304.
1460:
1458:
1456:
1155:
986:Assumptions of monopolistic competition
938:simulation game used to teach or learn
29:
1373:
1324:
1271:
1096:. At a deeper level, students develop
1575:"Macroeconomics Simulation: Econland"
1010:Zero economic profits in the long-run
7:
1299:Active Learning in Higher Education
970:Example in monopolistic competition
14:
1348:Review of Agricultural Economics
864:
852:
37:
139:Concepts, theory and techniques
1492:Journal of Economics Education
1412:Journal of Economics Education
1:
1561:"Lengnick's Baseline Economy"
1211:Journal of Economic Education
1180:Journal of Economic Education
933:". Similarly, Finnish author
1213:. 30 (Summer) (3): 278–91.
1066:Harvard Business Publishing
917:that contains a mixture of
1703:
1182:. 30 (Winter) (1): 33–42.
1135:Government simulation game
1056:Examples in Macroeconomics
1042:Simulation game experience
1539:10.1080/00220480309595209
1504:10.1080/00220480309595209
1311:10.1177/1469787406069056
1258:10.1257/0002828041301731
1246:American Economic Review
1125:Business simulation game
1098:critical thinking skills
992:monopolistic competition
946:within this discipline.
127:JEL classification codes
1006:product differentiation
998:Many buyers and sellers
313:Industrial organization
170:Computational economics
1465:Baye, Michael (2009).
1295:"Simulation and games"
1163:Ruohomaki, V. (1995).
980:experimental economics
950:In economics education
165:Experimental economics
1595:Additional References
1049:diseconomies of scale
990:A simulation game in
1078:economic environment
392:Social choice theory
1682:Economics education
1445:Roth, A.E. (1995).
1395:Gentry, J. (1990).
1145:Training simulation
1120:Business simulation
1001:Easy entry and exit
955:Economics education
859:Business portal
180:Operations research
160:National accounting
1677:Business education
944:theoretical models
190:Industrial complex
185:Middle income trap
1476:978-0-07-337568-7
1130:Game (simulation)
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1004:Some degree of
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911:simulation game
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1657:on 4 May 2010.
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318:Information
258:Engineering
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1666:Categories
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555:Clark
470:Smith
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102:Macro
98:Micro
59:Index
1471:ISBN
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