Economic Efficiency and the Role of Prices: Market Sessions for the Use in the Classroom

Stuart Mestelmen

McMaster University
Hamilton, Ontario, Canada
L8S 4M4

December 1985

Abstract

The paper presents three market sessions which can be run in large introductory and intermediate classes. Data relevant to important topics are provided. The relative efficiency of a command economy and a market economy, the role of information in market adjustment, and the extent to which contract price information is sufficient to lead many individuals with very different preferences to optimal outcomes are a few of these topics. The sessions differ from the economics games frequently used in classroom settings (such as board games or computer assisted production management and investment games). The sessions have the advantage that the instructor can control the parameter values presented to the participants, and therefore directly test the standard supply and demand models in the classroom setting.
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