Toward Teaching Markets as Complex Systems: A Web Based Simulation Assignment Implemented in Netlogo
AbstractThis paper is based on a simulation model, programmed in NetLogo, that demonstrates changes in market structure that occur as marginal costs, demand, and barriers to entry change. Students predict and observe market structure changes in terms of number of firms, market concentration, market price and quantity, and average marginal costs, profits, and markups across the market as firms innovate. By adjusting the demand growth and barriers to entry, students can explore market changes in terms of the output variables mentioned above. The exercise allows students to synthesise information from several different chapters of the text that discuss differing market structures including perfect competition, monopoly, monopolistic competition, and oligopoly. Finally, the exercise exposes students to computational methods, simulation, and a dynamic perspective on the static models provided by the course text.
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Bibliographic InfoArticle provided by Economics Network, University of Bristol in its journal International Review of Economics Education.
Volume (Year): 11 (2012)
Issue (Month): 2 ()
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Postal: University of Bristol, BS8 1HH, United Kingdom
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- Jyotirmoy Sarkar & Barnali Gupta & Debashis Pal, 1998. "A Geometric Solution of a Cournot Oligopoly with Nonidentical Firms," Journal of Economic Education, Taylor and Francis Journals, vol. 29(2), pages 118-126, January.
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