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


  • Simon Gächter
  • Christian Thöni
  • Jean-Robert Tyran


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.

Suggested Citation

  • Simon Gächter & Christian Thöni & Jean-Robert Tyran, 2006. "Cournot Competition and Hit-and-Run Entry and Exit in a Teaching Experiment," The Journal of Economic Education, Taylor & Francis Journals, vol. 37(4), pages 418-430, October.
  • Handle: RePEc:taf:jeduce:v:37:y:2006:i:4:p:418-430 DOI: 10.3200/JECE.37.4.418-430

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    References listed on IDEAS

    1. Ann Kirby & Brendan McElroy, 2003. "The Effect of Attendance on Grade for First Year Economics Students in University College Cork," The Economic and Social Review, Economic and Social Studies, vol. 34(3), pages 311-326.
    2. Siegfried, John J & Fels, Rendigs, 1979. "Research on Teaching College Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 17(3), pages 923-969, September.
    3. Pritchett, Lant & Filmer, Deon, 1999. "What education production functions really show: a positive theory of education expenditures," Economics of Education Review, Elsevier, vol. 18(2), pages 223-239, April.
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    5. Daniel R. Marburger, 2001. "Absenteeism and Undergraduate Exam Performance," The Journal of Economic Education, Taylor & Francis Journals, vol. 32(2), pages 99-109, January.
    6. Massimiliano Bratti & Stefano Staffolani, 2013. "Student Time Allocation and Educational Production Functions," Annals of Economics and Statistics, GENES, issue 111-112, pages 103-140.
    7. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages 3-33, February.
    8. Dolton, Peter & Marcenaro, Oscar D. & Navarro, Lucia, 2003. "The effective use of student time: a stochastic frontier production function case study," Economics of Education Review, Elsevier, vol. 22(6), pages 547-560, December.
    9. Edward P. Lazear, 2001. "Educational Production," The Quarterly Journal of Economics, Oxford University Press, vol. 116(3), pages 777-803.
    10. Durden, Garey C & Ellis, Larry V, 1995. "The Effects of Attendance on Student Learning in Principles of Economics," American Economic Review, American Economic Association, vol. 85(2), pages 343-346, May.
    11. Stephen Devadoss & John Foltz, 1996. "Evaluation of Factors Influencing Student Class Attendance and Performance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 499-507.
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    Cited by:

    1. Correa, Manuel & García-Quero, Fernando & Ortega-Ortega, Marta, 2016. "A role-play to explain cartel behavior: Discussing the oligopolistic market," International Review of Economics Education, Elsevier, vol. 22(C), pages 8-15.
    2. 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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