Two Experiments in Firm Choice

James Staveley-O’Carroll ()
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James Staveley-O’Carroll: Babson College

Eastern Economic Journal, 2023, vol. 49, issue 1, No 9, 104-112

Abstract: Abstract This paper describes two short experiments which can be run back-to-back in a microeconomic principles course. In both experiments, student groups run hypothetical firms and compete to maximize profit. The first experiment assumes perfect competition and teaches students to follow the production and shutdown rules when firms are price-takers. The second experiment allows students to set their own production level and price in an oligopoly market. Students apply cost structure, firm choice, and market structure theory. Each experiment takes about thirty minutes and can be implemented in an in-person, online, or hybrid course.

Keywords: Classroom experiment; Perfect competition; Imperfect competition; Firm choice (search for similar items in EconPapers)
JEL-codes: A22 D21 D41 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1057/s41302-022-00227-w

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