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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

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    1. Vernon L. Smith, 1962. "An Experimental Study of Competitive Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 70, pages 111-111.
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    Cited by:

    1. Ruffle, Bradley J., 2005. "Tax and subsidy incidence equivalence theories: experimental evidence from competitive markets," Journal of Public Economics, Elsevier, vol. 89(8), pages 1519-1542, August.
    2. Charles A. Holt & Roger Sherman, 1999. "Classroom Games: A Market for Lemons," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 205-214, Winter.
    3. Denise Hazlett & Kathy A. Paulson Gjerde & José J. Vazquez-Cognet & Judith A. Smrha, 2010. "Conducting Experiments in the Economics Classroom," Chapters,in: Teaching Innovations in Economics, chapter 5 Edward Elgar Publishing.
    4. Attanasi, Giuseppe & Centorrino, Samuele & Moscati, Ivan, 2016. "Over-the-counter markets vs. double auctions: A comparative experimental study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 63(C), pages 22-35.
    5. William E. Becker, 2007. "Quit Lying and Address the Controversies: There are No Dogmata, Laws, Rules or Standards in the Science of Economics," The American Economist, Sage Publications, vol. 51(1), pages 3-14, March.
    6. Becker, William E., 2004. "Good-byE old, hello new in teaching economics," Australasian Journal of Economics Education (AJEE), University of Queensland, School of Economics, vol. 1(1), pages 5-17, March.
    7. Markwardt, Gunther & Seidel, André & Thum, Marcel, 2016. "Classroom Games: Trading in a Pit Market 2.0," CEPIE Working Papers 04/16, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    8. Tisha Emerson & Denise Hazlett, 2011. "Classroom Experiments," Chapters,in: International Handbook on Teaching and Learning Economics, chapter 7 Edward Elgar Publishing.
    9. Van de Walle, Bartel & Turoff, Murray, 2009. "Fuzzy relations for the analysis of traders' preferences in an information market game," European Journal of Operational Research, Elsevier, vol. 195(3), pages 905-913, June.
    10. Lisa R. Anderson & Sarah L. Stafford, 2000. "Choosing Winners and Losers in a Classroom Permit Trading Game," Southern Economic Journal, Southern Economic Association, vol. 67(1), pages 212-219, July.
    11. Axelsen, Dan & Snarr, Hal W. & Friesner, Dan, 2009. "Teaching consumer theory to business students: an integrative approach," MPRA Paper 37249, University Library of Munich, Germany.

    More about this item

    JEL classification:

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

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