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Cournot Competition and Hit-and-Run Entry and Exit in a Teaching Experiment

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  • Simon G�chter
  • Christian Th�ni
  • Jean-Robert Tyran

Abstract

Instructors can use a computerized experiment to introduce students to imperfect competition in courses on introductory economics, industrial organization, game theory, and strategy and management. In addition to introducing students to strategic thinking in general, the experiment serves to demonstrate that profits of a firm fall as the number of competitors is increased in a market and that firms enter profitable markets. The authors have used the experiment in undergraduate classes on strategy and management as well as in master of business administration courses with great success.

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File URL: http://hdl.handle.net/10.3200/JECE.37.4.418-430
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of Economic Education.

Volume (Year): 37 (2006)
Issue (Month): 4 (October)
Pages: 418-430

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Handle: RePEc:taf:jeduce:v:37:y:2006:i:4:p:418-430

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Cited by:
  1. Garrouste, Christelle & Loi, Massimo, 2009. "Applications De La Theorie Des Jeux A L'Education: Pour Quels Types Et Niveaux D'Education, Quels Modeles, Quels Resultats?
    [Applications of Game Theory in Education - What Types and At What Levels
    ," MPRA Paper 31825, University Library of Munich, Germany.

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