Experiments

Economics experiments are probably the most common strategy used in economics classrooms. Multiple economic concepts can be experimented in the classroom. An instructor, without previous knowledge of classroom experiments, should refer to Holt (2007) and Starting Point as they provide all the necessary background and instructions for implementation.

The efficiency of classroom experiments is extensively scrutinized in the economics literature. Most studies identify positive results; however, there is no strong consensus. Frank, 1997Emerson and Taylor, 2004Ball et al., 2006Dickie, 2006Durham et al., 2007Emerson and Taylor, 2007Emerson and English, 2016Grol et al., 2017Lin (2018); and Lin (2020) found positive results, while Yandell, 1999; Mitchell, 2008Dufwenberg and Swarthout, 2009; Ebbers et al., 2012; and Eisenkopf and Sulser, 2016 find mitigated results.

Below is a list of experiments that you can use with your students in the classroom.

Industrial Organization

  • Adverse Selection

​​Grogan (2018)Hodgson (2014); Mellor (2005)

  • Advertising

Freeborn and Hulbert (2011)

  • Capacity-Constrained Firms

Barseghyan and Grigoryan (2019)

  • Collusion and Cartels

Correa et al. (2016)Picault (2015)

  • Competitive Markets

Holt (1996); Baker and Madden (2021)

  • Double Oral Auction

Hampton and Johnson (2020)

  • Duopolies

Beckman (2003)Giles and Voola (2006); Meister (1999)Picault (2015)

  • Hotelling Model

Anderson et al. (2010)

  • Lerner Index

Rojas (2011)

  • Monopoly

Oxoby (2001)Rojas (2011)

  • Patent vs Open Source

Picault (2020)

  • Platforms

Nungsari and Flanders (2020)

  • Price Discrimination

Aguiló et al. (2016)

  • Product Differentiation

Geerling and Mateer (2021)

  • Supply Chains

Hong (2020)

  • Vertical Integration

Badasyan et al. (2009)

Microeconomics​​​

  • Diminishing Marginal Product

Storrie (2020)

  • Diminishing Marginal Utility

Lin (2018)

  • General Equilibrium

Boháček (2002); Johnson (2010)

  • Labor Market

Garces-Ozanne and Esplin (2010)Haupert (1996)

  • Price Elasticity of Demand

Lin (2018)Muchiri and Paraschiv (2019)

  • Prisoner’s Dilemma

Holt and Capra (2000)

  • Sunk Cost

Sirois (2019)

  • Supply and Demand

Holt (1996)Settlage and Wollscheid (2019) 

  • Utility Maximization

Raboy (2017)

Macroeconomics

  • Aggregate Demand

Benson and Stegner (1997)​

  • Exchange Rate

Hazlett and Ganje (1999); Johnson (2018)Johnson and Staveley-O’Carroll (2020)Mitchell et al. (2009)

  • Labor Mobility

Lin (2021)

  • Money Demand

Chen (2018)​; Ewing et al. (2004)​

  • Production-Possibility Frontier

Carson and Tsigaris (2011); Lin (2018); Lin (2021)Neral and Ray (1995)​

Finance

  • Floor Trading

Holt (1996)

  • Risk

Ewing et al. (2004)​

  • Speculative Bubbles

Ball and Holt (1998)Moinas and Pouget (2016)

Political Economics

  • Distributive Justice

Alden (2000)

  • Rent Seeking

Roush and Johnson (2018)Strow and Strow (2006)

  • Voting

Holt and Anderson (1999)​

Environmental Economics

  • Coase Theorem

Gourley (2018)

  • Common-Pool Resources Management

Farolfi and Erdlenbruch (2020)

  • Negative Externality from Production

Carson and Tsigaris (2011); Corrigan (2011); Hoyt et al. (1999)

  • Cap and Trade

Carattini et al. (2020); Caviglia-Harris and Melstrom (2015)Corrigan (2011)

  • Public Good Provision

Holt and Laury (1997); Lamb and Tsigaris (2011)

Money and Banking

  • Bank Equity Requirements

Hazlett (2016)

  • Bank Runs

Balkenborg et al. (2011)

  • Monetary Policy

Duffy and Jenkins (2019)

  • Role of Banks

Kassis et al. (2012)

  • Role of Central Banks

Hoffer (2015)

Trade

  • Comparative Advantage and Gains from Trade

Anderson et al. (2008)Chiang (2007); Cook and Pantuosco (2022)Haupert (1996); Hong (2019)

  • Tariffs

Winchester (2006)

  • Trade Barriers

Hazlett (2014)

  • New Trade Theory

Yamarik (2018)

 

General Economic Skills

  • Economic Modeling

Geerling et al. (2019)

  • Monty Hall Dilemma

Dupont and Durham (2018)