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Competitive Equilibrium and Classroom Pit Markets

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  • Bradley J. Ruffle

Abstract

Efforts to show the relevance of economic concepts early in a student's education can prevent the “economics is not very useful” attitude from setting in. The author extends the work of Holt to describe a pit-market experiment used to illustrate the concept of competitive equilibrium. In addition to detailed instructions as to how to set up and conduct a pit-market experiment, the author discusses features of the data and provides accompanying materials, including software for the display of the data.

Suggested Citation

  • Bradley J. Ruffle, 2003. "Competitive Equilibrium and Classroom Pit Markets," The Journal of Economic Education, Taylor & Francis Journals, vol. 34(2), pages 123-137, January.
    • Handle: RePEc:taf:jeduce:v:34:y:2003:i:2:p:123-137
    DOI: 10.1080/00220480309595207
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    References listed on IDEAS

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    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. Smith, Vernon L. & Williams, Arlington W., 1982. "The effects of rent asymmetries in experimental auction markets," Journal of Economic Behavior & Organization, Elsevier, vol. 3(1), pages 99-116, March.
    3. Vernon L. Smith, 1962. "An Experimental Study of Competitive Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 70, pages 111-111.
    4. Noussair, Charles N & Plott, Charles R & Riezman, Raymond G, 1997. "The Principles of Exchange Rate Determination in an International Financial Experiment," Journal of Political Economy, University of Chicago Press, vol. 105(4), pages 822-861, August.
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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. Liu, Donald J. & Walker, J.D. & Bauer, Theresa A. & Zhao, Meng, 2007. "Facilitating Classroom Economics Experiments with an Emerging Technology: The Case of Clickers," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9873, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Giuseppe Attanasi & Kene Boun My & Andrea Guido & Mathieu Lefebvre, 2021. "Controlling monopoly power in a double‐auction market experiment," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(5), pages 1074-1101, October.
    4. Roland Kirstein & Dieter Schmidtchen, "undated". "Self-interest, Social Wealth, and Competition as a Discovery Procedure," German Working Papers in Law and Economics 2004-1-1083, Berkeley Electronic Press.
    5. Giuseppe Attanasi & Samuele Centorrino & Elena Manzoni, 2020. "Zero-Intelligence vs. Human Agents: An Experimental Analysis of the Efficiency of Double Auctions and Over-the-Counter Markets of Varying Sizes," Working Papers 05/2020, University of Verona, Department of Economics.
    6. Morgan, Stephen N. & Sharp, Misti D. & Grogan, Kelly A., 2020. "So You Want to Run a Classroom Experiment Online? The Good, the Bad, and the Different," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 2(5), December.
    7. Gwendolyn Alexander Tedeschi, 2007. "Drug Markets: A Classroom Experiment," The American Economist, Sage Publications, vol. 51(1), pages 75-84, March.
    8. Lucas M. Engelhardt, 2015. "Simulating Price-Taking," The Journal of Economic Education, Taylor & Francis Journals, vol. 46(4), pages 430-439, October.
    9. Kirstein, Roland & Schmidtchen, Dieter, 2003. "Self-interest, Social Wealth, and Competition as a Discovery Procedure : A classroom experiment that makes the "invisible hand" visible," CSLE Discussion Paper Series 2003-08, Saarland University, CSLE - Center for the Study of Law and Economics.
    10. Thomas Kemp & Tim Wunder, 2007. "Simulating inequality and social order in the classroom: A macroeconomic game," Review of Social Economy, Taylor & Francis Journals, vol. 65(4), pages 425-443.

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