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Classroom Game on the Theory of Rent Seeking: Some Practical Experience
Author(s) -
Bischoff Ivo,
Hofmann Kai
Publication year - 2002
Publication title -
southern economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.762
H-Index - 58
eISSN - 2325-8012
pISSN - 0038-4038
DOI - 10.1002/j.2325-8012.2002.tb00486.x
Subject(s) - extension (predicate logic) , rent seeking , preference , space (punctuation) , value (mathematics) , economics , microeconomics , game theory , mathematical economics , basis (linear algebra) , computer science , mathematics , political science , politics , law , programming language , operating system , machine learning , geometry
On the basis of our practical experience in applying the classroom game on rent seeking proposed by Goeree and Holt, we suggest two setup modifications and one extension to the original game. The modifications are intended to increase the teaching value of the classroom game by enlarging the choice space of the teams and further clarifying the welfare consequences of rent seeking. The extension is introduced to show that teams' high risk preference does not result from a misperception of the decision‐making problem. Instead, this preference is argued to be the consequence of the rivalrous nature of the game.