Advanced Search
MyIDEAS: Login

The Basics of International Trade: A Classroom Experiment

Contents:

Author Info

  • Alberto Isgut

    () (Institute for Competitiveness & Prosperity, Toronto, Ontario M5S 2V6)

  • Ganesan Ravishanker

    () (ITS, Wesleyan University)

  • Tanya Rosenblat

    () (Department of Economics, Wesleyan University)

Abstract

We introduce a simple web-based classroom experiment in which students learn the Ricardian model of international trade. Students are assigned to countries and then make individual production, trade and consumption decisions. The analysis of experimental data introduces students to the concepts of absolute and comparative advantage, relative prices, production possibility frontier, specialization, gains from trade, utility maximization and general equilibrium. Students learn about the relationship between individual decision-making and aggregate economic activity. The associated software, Ricardian Explorer, is easy to setup and requires minimal preparation time for instructors. The game is developed as a tool to complement courses in international trade, but it can be used in introductory and intermediate microeconomics courses as well. The analysis of teaching effectiveness has demonstrated that integration of this experiment in the curriculum enhances student learning.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://repec.wesleyan.edu/pdf/aisgut/2005013_isgut.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Wesleyan University, Department of Economics in its series Wesleyan Economics Working Papers with number 2005-013.

as in new window
Length: 24 pages
Date of creation: May 2005
Date of revision:
Handle: RePEc:wes:weswpa:2005-013

Contact details of provider:
Postal: PAC 123, 238 Church Street, Middletown, CT 06459-0007
Phone: (860)685-2340
Fax: (860)685-2781
Web page: http://www.wesleyan.edu/econ/
More information through EDIRC

Related research

Keywords: Absolute advantage; comparative advantage; specialization; production possibility frontier; gains from trade; utility maximization; general equilibrium; classroom experiments;

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Woltjer,Geert, 2003. "Decisions and macroeconomics: development and implementation of a simulation game," Research Memoranda 003, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
  2. Noussair, C.N. & Plott, C. & Riezman, R., 1995. "An experimental investigation of the patterns of international trade," Open Access publications from Tilburg University urn:nbn:nl:ui:12-387775, Tilburg University.
  3. Krugman, Paul R, 1993. "What Do Undergrads Need to Know about Trade?," American Economic Review, American Economic Association, vol. 83(2), pages 23-26, May.
  4. Joseph Santos, 2002. "Developing and Implementing an Internet-Based Financial System Simulation Game," Journal of Economic Education, Taylor and Francis Journals, vol. 33(1), pages 31-40, January.
  5. Geert B. Woltjer, 2005. "Decisions and Macroeconomics: Development and Implementation of a Simulation Game," Journal of Economic Education, Taylor and Francis Journals, vol. 36(2), pages 139-144, April.
  6. Joseph Santos, 2002. "Developing and Implementing an Internet-Based Financial System Simulation Game," Journal of Economic Education, Taylor and Francis Journals, vol. 33(1), pages 31-40, January.
  7. Charles A. Holt, 1999. "Teaching Economics with Classroom Experiments: A Symposium," Southern Economic Journal, Southern Economic Association, vol. 65(3), pages 603-610, January.
  8. repec:jee:journl:v:34:y:2003:i:2:p:151-168 is not listed on IDEAS
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wes:weswpa:2005-013

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Manolis Kaparakis).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.