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A Laboratory Science Approach to Teaching in the Agricultural Economics Curriculum
Author(s) -
Wilson Norbert L.W.,
Nelson Robert G.
Publication year - 2009
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1111/j.1467-9353.2009.01440.x
Subject(s) - economics , externality , monopoly , oligopoly , microeconomics , curriculum , learning by doing , industrial organization , experimental economics , speculation , production (economics) , macroeconomics , economic growth , cournot competition
We argue that economic laboratory experiments can facilitate active learning of theory in the agricultural economics curriculum by placing students in decision‐making roles. Three types of experimental protocols are described, along with a discussion of the costs and benefits of experiments. The Double Auction Experiment provides a platform for demonstrating concepts of equilibrium, price discovery, externalities, excess supply, surplus, and speculation. The Monopoly Experiment is a platform for demonstrating concepts of advance production, inventory carryover, monopoly pricing, and search strategies. The Oligopoly Experiment is a platform for demonstrating concepts of thin markets, coordination, and imperfectly competitive equilibria.