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Classroom Games: Trading in a Pit Market

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  • Charles A. Holt

Abstract

This paper describes a classroom exercise that resembles trading in the 'pit' of some financial and futures markets. Playing cards are used to induce supply and demand functions. Instructions and helpful hints are provided. The exercise facilitates an understanding and appreciation of the robustness and efficiency of the textbook model of perfect competition.

Suggested Citation

  • Charles A. Holt, 1996. "Classroom Games: Trading in a Pit Market," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 193-203, Winter.
    • Handle: RePEc:aea:jecper:v:10:y:1996:i:1:p:193-203
    Note: DOI: 10.1257/jep.10.1.193
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.10.1.193
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    References listed on IDEAS

    as
    1. Vernon L. Smith, 1962. "An Experimental Study of Competitive Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 70(2), pages 111-111.
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    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate

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