Pub Date : 1999-01-01DOI: 10.1080/00220489909596095
J. P. Meister
In teaching principles of economics, I have found that a number of otherwise high-quality textbooks do not cover oligopoly theory in a modern, yet accessible way. For instance, the workhorse model for some chapters on oligopoly is the kinked demand curve, even though it is not really a focal point of any higherlevel presentation of oligopoly theory. Partially to deal with this problem,I decided to let students have an opportunity to learn about oligopoly in a hands-on manner. I have them participate in an in-class simulation based on a quantitycompetition oligopoly game (see Carlton and Perloff 1994 for a detailed discussion of quantity-competition oligopoly) in which firms’products are perfect substitutes.1 (For other oligopoly games, see Joseph 1965, and Hemenway, Moore, and Whitney 1987.) I typically start this game after introducing the topic of oligopoly in class and showing students some basic game theory. I divide students into industries of five firms (I discuss later how I handle different sizes of industries), and each person is the manager of one firm.2 To give students incentive to maximize profit, each player earns extra credit on the basis of individual, average profit over the course of the game. The game has several rounds. Students learn that the attempt to have the greatest market share can be damaging to profits. Students perform calculations to see if, during the course of the game, they are producing anywhere near a one-period, profit-maximizing level of output. This can help them determine if they are producing too much or too little. Students have reported that such cal-
在讲授经济学原理的过程中,我发现许多高质量的教科书并没有以一种现代而易懂的方式涵盖寡头垄断理论。例如,关于寡头垄断的一些章节的主力模型是扭曲的需求曲线,尽管它并不是寡头垄断理论的任何高级表述的真正焦点。部分是为了解决这个问题,我决定让学生有机会以动手的方式学习寡头垄断。我让他们参加了一个基于数量竞争寡头垄断博弈的课堂模拟(参见Carlton和Perloff 1994年关于数量竞争寡头垄断的详细讨论),其中企业的产品是完全替代的(关于其他寡头垄断游戏,请参阅《Joseph 1965》和《Hemenway, Moore, and Whitney 1987》。)我通常在课堂上介绍寡头垄断的话题并向学生展示一些基本的博弈论之后开始这个游戏。我把学生分成5个公司的行业(我稍后会讨论我是如何处理不同规模的行业的),每个人都是一个公司的经理为了激励学生最大化利润,每个玩家在游戏过程中的个人平均利润的基础上获得额外的学分。游戏有几个回合。学生们了解到,试图获得最大的市场份额可能会损害利润。学生们进行计算,看看在游戏过程中,他们的产出是否接近于一个周期的利润最大化水平。这可以帮助他们确定自己是分泌过多还是过少。学生们报告说,这样的呼吁
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Pub Date : 1999-01-01DOI: 10.1080/00220489909595941
E. Silberberg
The envelope theorem, now the fundamental tool in modem duality analysis, had its beginnings in Jacob Viner's classic 1931 article on shortand long-run cost curves. It seemed wrong to Viner that at any given point along the long-run cost curve, the long-run average cost curve should have the same slope as the short-run curve, where capital was being held constant. This is still a puzzle to many people, along with the various other envelope theorem results (see, for example, the discussion of a related issue by Sexton, Graves, and Lee 1993). Viner instructed his draftsman, Wong, to draw the long-run curve through the minimum points of the short-run average cost curves. Curiously, Samuelson's resolution of the puzzle in Foundations (1947) dealt only with a simple unconstrained maximum problem, maximize y = f(xl2 ... .. n, a), where the xi's are the decision variables and a is a vector of parameters. Its relation to the original Viner-Wong diagram seems a bit remote at first, and, curiously, a discussion of the envelope theorem in the explicit Viner-Wong context seems missing from the literature.' This is unfortunate because it is possible to communicate the essence of this result (and more general results) with a simple cost diagram that goes back to the roots of cost theory.
{"title":"The Viner-Wong Envelope Theorem.","authors":"E. Silberberg","doi":"10.1080/00220489909595941","DOIUrl":"https://doi.org/10.1080/00220489909595941","url":null,"abstract":"The envelope theorem, now the fundamental tool in modem duality analysis, had its beginnings in Jacob Viner's classic 1931 article on shortand long-run cost curves. It seemed wrong to Viner that at any given point along the long-run cost curve, the long-run average cost curve should have the same slope as the short-run curve, where capital was being held constant. This is still a puzzle to many people, along with the various other envelope theorem results (see, for example, the discussion of a related issue by Sexton, Graves, and Lee 1993). Viner instructed his draftsman, Wong, to draw the long-run curve through the minimum points of the short-run average cost curves. Curiously, Samuelson's resolution of the puzzle in Foundations (1947) dealt only with a simple unconstrained maximum problem, maximize y = f(xl2 ... .. n, a), where the xi's are the decision variables and a is a vector of parameters. Its relation to the original Viner-Wong diagram seems a bit remote at first, and, curiously, a discussion of the envelope theorem in the explicit Viner-Wong context seems missing from the literature.' This is unfortunate because it is possible to communicate the essence of this result (and more general results) with a simple cost diagram that goes back to the roots of cost theory.","PeriodicalId":51564,"journal":{"name":"Journal of Economic Education","volume":"37 1","pages":"75-79"},"PeriodicalIF":0.9,"publicationDate":"1999-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74642397","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1999-01-01DOI: 10.1080/00220489909596100
C. Swan
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Pub Date : 1999-01-01DOI: 10.1080/00220489909595940
S. Shmanske, D. Packey
Economists are used to sketching demand curves that do not reach the vertical axis. What happens to the demand curve at low quantities is often ignored, which is understandable if the relevant cases for analysis all have prices that intersect the demand curve at quantities measurably far from zero. Nevertheless, in textbook treatments of the summation of individual demand curves (horizontal for rival goods or vertical for nonrival goodst), the individual curves are pictured as nicely intersecting the vertical axis. The point of intersection is sometimes referred to as the choke price. In textbook treatments of aggregation, the demand curve is continuous, but not continuously differentiable, through the choke price. A hidden implication of this is that the inverse demand curve, which, abstracting from income effects, is the marginal valuation schedule, is represented by the same diagram. Adding the demand curves horizontally or the marginal valuation curves vertically poses no particular problem. In distinction to the usual treatment, we were motivated by the real possibility that small amounts of a good are worthless to the consumer. For example, a pint of gasoline would not allow one to operate an automobile in a useful way, but several tankfuls could be a valuable input toward vacation travel. Wheels for one's automobile are generally worthless until you have at least four; 20 feet of fencing may be worthless if your property line is 30 feet; a bridge spanning 40
{"title":"Lumpy Demand and the Diagrammatics of Aggregation","authors":"S. Shmanske, D. Packey","doi":"10.1080/00220489909595940","DOIUrl":"https://doi.org/10.1080/00220489909595940","url":null,"abstract":"Economists are used to sketching demand curves that do not reach the vertical axis. What happens to the demand curve at low quantities is often ignored, which is understandable if the relevant cases for analysis all have prices that intersect the demand curve at quantities measurably far from zero. Nevertheless, in textbook treatments of the summation of individual demand curves (horizontal for rival goods or vertical for nonrival goodst), the individual curves are pictured as nicely intersecting the vertical axis. The point of intersection is sometimes referred to as the choke price. In textbook treatments of aggregation, the demand curve is continuous, but not continuously differentiable, through the choke price. A hidden implication of this is that the inverse demand curve, which, abstracting from income effects, is the marginal valuation schedule, is represented by the same diagram. Adding the demand curves horizontally or the marginal valuation curves vertically poses no particular problem. In distinction to the usual treatment, we were motivated by the real possibility that small amounts of a good are worthless to the consumer. For example, a pint of gasoline would not allow one to operate an automobile in a useful way, but several tankfuls could be a valuable input toward vacation travel. Wheels for one's automobile are generally worthless until you have at least four; 20 feet of fencing may be worthless if your property line is 30 feet; a bridge spanning 40","PeriodicalId":51564,"journal":{"name":"Journal of Economic Education","volume":"57 11 1","pages":"64-74"},"PeriodicalIF":0.9,"publicationDate":"1999-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86790449","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1999-01-01DOI: 10.1080/00220489909595951
G. Hoyt, Patricia Ryan, R. Houston
It is necessary to know whether the dama ging business is lia ble or not for damage caused since without the esta blishment of this initial delimitation of rights there can be no market transactions to transfer and recombine them. But the ultimate result (which maximises the value of production) is independent of the le gal position if the pricing system is assumed to work without cost. R. H. Coase The Paper River is a cl a s s room simu l ation designed to examine a negat ive ex t e rnality ge n e rated by a pro d u c t ive process that elicits a Coasian solution. Pre v i o u s ex p e riments designed by Hazlett (1995), N u gent (1993, 1 9 9 7 ) , and Berg s t rom and Miller (1997, 179‐99) focus on how pollution emission rights can be effi c i e n t l y a l l o c ated by the market through pro p e rty rights. Although these ex p e riments touch on pro p e rty rights in demonstrating how emission rights are a more efficient means of reducing pollution than gove rnment imposed limits, t h ey do not add ress Coase’s Th e o rem dire c t ly. Classroom ex p e riments that demonstrate Coase’s T h e o re m i n clude those by Delemeester and Neral (1995, 115‐19) and Stodder (1996). In these activ i t i e s , students imagine they are either the cr e ator or recipient of a h y p othetical ex t e rn a l i t y. Although this ap p ro a ch is useful for conveying Coase’s T h e ore m , it does not give students the opportunity to g e n e rate and ex p e rience the ex t e rnality dire c t ly. In the Paper Rive r, students cre ate and ex p e rience an ex t e rnality fi rs t hand and then concep t u a l i ze a correction pro c e d u re that is consistent with Coase’s Th e o rem. The unique nat u re of this simu l ation allows students to be invo l ve d d i re c t l y in the ex t e rn a l i t y . In add i t i o n , it simu l ates an actual env i ronmental pro bl e m , wh i ch will enable students to identify more easily other examples of e x t e rnalities that affect our society, s u ch as endange red species, d e s t ruction of the ra i nfo re s t s , and pre s e rvation of nat u ral hab i t at s .
有必要知道损害企业是否对所造成的损害负有责任,因为如果不建立这种初步的权利界限,就不可能有转让和重组权利的市场交易。但如果定价体系被假定为无成本运作,那么最终结果(使生产价值最大化)与法律地位无关。R. H. Coase The Paper River是一种室内模拟系统,设计用于检查由一个专业人员评估的环境质量的负面影响,而这个过程会引发一个Coasian解决方案。在此基础上,由Hazlett(1995)、N u gent(1993)、Berg s. t . rom和Miller(1997, 179 - 99)设计的模型着重研究了污染排放权如何有效地发挥作用,从而使市场能够通过产权来控制污染排放权。尽管这些条款在证明排放权是一种比政府强制限制更有效的减少污染的手段时触及了财产权,但它们并没有增加科斯的《碳排放权》。证明科斯理论的课堂实验包括Delemeester和Neral(1995,115 - 19)和Stodder(1996)的实验。在这些活动中,学生想象自己要么是一个命题的创造者,要么是一个命题的接受者。虽然这个命题对于传达科斯的命题是有用的,但它并没有给学生机会去理解和体验这个命题的真实性。摘要赖夫r,学生cre吃和p e rience交货前t e rnality fi rs手然后基本u l我泽修正pro e c d u再保险符合高斯的Th e o rem。这种形式的独特的nat u再保险l信息使学生成为其y l ve d d我再保险c t l例t e rn l我t y。在添加我t i o n,它可以利用l机台实际env我ronmental pro提单e m, wh我ch将使学生更容易识别的其他例子e x t e rnalities影响我们的社会,s u ch作为endange红色物种,d e s t ra的吵闹我nfo s t s, s e rvation nat u以前文化、藻种我t s。
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Pub Date : 1999-01-01DOI: 10.1080/00220489909596096
D. Hazlett, Jeela Ganje
This classroom experiment shows under what conditions the parallel market rate approximates the free-market value of the domestic currency. In addition, the experiment demonstrates how the existence of an official exchange rate may suppress international trade and promote corruption. Students take the roles of foreign exchange traders in a developing country. Their government desires a higher value for its currency than the market-clearing exchange rate. However, the government does not have foreign currency reserves to sell in order to maintain this value. Instead, it establishes an official foreign exchange market in which it trades some currency at the overvalued rate. In the official market, the quantity demanded of foreign currency exceeds the quantity supplied, so a parallel foreign exchange market with a floating rate handles the excess demand. Kiguel and O'Connell (1995) describe such dual exchange rate systems as common in developing countries. Typically, a developing country establishes an official market with an over-valued exchange rate to avoid the inflationary effects of a depreciation. Sometimes the government formally establishes a parallel foreign exchange market as well. For instance, developing countries often establish an official exchange rate for commercial transactions and a floating rate for financial transactions. In other cases, the parallel markets arise spontaneously, with varying degrees of tolerance from the government; these markets are called a gray market. If the government penalizes trade in the parallel market, it is called a black market. We used this experiment in a monetary theory course to introduce the role of supply and demand in foreign exchange markets and in a principles of economics course as part of a unit on the effects of government price controls. We also used an earlier version of the experiment in intermediate macroeconomics to introduce the various forms of foreign exchange regimes and in an openeconomy macroeconomics course to illustrate the economic effects of an overvalued currency in a developing country. Instructors could also use it for the financial section of an international economics course or in a course in development economics.
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Pub Date : 1999-01-01DOI: 10.1080/00220489909595935
George Bredon
Economics instructors who use the news sparingly in their classrooms may find that news available on the Internet overcomes some problems that have limited the use of news.1 In a recent survey, teachers of undergraduate economics reported a mean usage of 22 percent (with a median of 22 percent) for the popular press as a source of assigned materials in introductory courses. This usage did not vary markedly for upper division or econometrics courses. The survey results for theory courses suggest more evangelical use-median usage was only 6 percent but a mean of 28 percent suggests the mean had been inflated by some intense users (Becker 1997; Becker and Watts 1996). For introductory courses, this evidence is corroborated by the type of textbook chosen by most instructors. Although McConnell and Brue (1996, xxi) argue that "capitalism in Russia, interest rate hikes, GATT, NAFTA, pollution rights, the balanced budget amendment" are illustrative of "a remarkable time for teaching and learning economics," their widely adopted textbook uses excerpts from current news sources in only a minor way. The authors discuss contemporary issues but most of the "Last Word" inserts illustrate specific economic principles or themes, and 35 of 40 are written by the authors. The reader is likely to encounter a humorous article, a biographical sketch, or some other noncurrent topic. Ancillary books and the Web site for the textbook are also noticeably devoid of news analysis. Presumably, instructors who use news would choose a textbook such as Parkin (1996) that uses news excerpts extensively because "a major goal of the principles course is to help students build critical thinking skills and use economic principles to interpret daily news events (and their coverage in the media)."2 Those who use newsclips are usually quick to extol their virtues, but little, if anything, has been written to explain why nonusers shun them. The explanation probably hinges on perceptions of their educational value, the time and effort needed to select suitable examples, and the costs of producing them. In this article, I address these issues and the use of the Internet for the selection and production of newsclips.
在课堂上很少使用新闻的经济学教师可能会发现,互联网上的新闻克服了一些限制新闻使用的问题在最近的一项调查中,经济学本科教师报告说,在入门课程中,大众媒体作为指定材料来源的平均使用率为22%(中位数为22%)。这种用法在高年级或计量经济学课程中没有明显变化。理论课程的调查结果表明,福音派的使用率更高——中位数使用率只有6%,但28%的平均值表明,一些狂热的用户夸大了平均值(Becker 1997;Becker and Watts 1996)。对于入门课程,大多数教师选择的教科书类型证实了这一点。尽管麦康奈尔和布鲁(1996,21)认为“俄罗斯的资本主义、加息、关贸总协定、北美自由贸易协定、污染权、平衡预算修正案”说明了“一个教授和学习经济学的重要时期”,但他们广泛采用的教科书只以很小的方式使用了当前新闻来源的摘录。作者讨论的是当代问题,但“最后一句话”的插页大多阐述了具体的经济原则或主题,40页中有35页是作者自己写的。读者可能会遇到一篇幽默的文章,一篇传记小品,或者其他一些不流行的话题。教科书的辅助书籍和网站也明显缺乏新闻分析。可以推测,使用新闻的教师会选择像Parkin(1996)这样广泛使用新闻摘录的教科书,因为“原理课程的主要目标是帮助学生建立批判性思维技能,并使用经济原理来解释日常新闻事件(以及媒体对其的报道)。”那些使用新闻剪报的人通常很快就会赞扬他们的优点,但很少有人(如果有的话)解释为什么不使用新闻剪报的人会避开它们。这种解释可能取决于对它们的教育价值的认识,选择合适的例子所需的时间和精力,以及制作它们的成本。在本文中,我将讨论这些问题以及如何利用互联网选择和制作新闻剪报。
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Pub Date : 1999-01-01DOI: 10.1080/00220489909595979
A. Katz, W. Becker
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Pub Date : 1999-01-01DOI: 10.1080/00220489909595956
W. Becker
(1999). Carl Shapiro and Hal R. Varian. Information Rules: A Strategic Guide to the Network Economy. Boston, Massachusetts: Harvard Business School Press, 1999. x + 352 pp. The Journal of Economic Education: Vol. 30, No. 2, pp. 189-190.
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Pub Date : 1999-01-01DOI: 10.1080/00220489909595996
Michael P. Murray
Increasingly, economics professors are provided access to computer classrooms. Teaching in such classrooms is both exciting and daunting: exciting because the new technologies promise the possibility of better teaching; daunting because the technology and its promise pose new challenges and create new pitfalls for teachers of economics. I eagerly champion using computer classrooms to teach econometrics better, but I also warn that these classrooms are not a panacea. Teaching in a computer classroom is very costly in faculty time and institutional dollars; only marked improvements in students' learning can justify such expense. In this article, I describe how the computer classroom has transformed my teaching of econometrics. I share caveats I have learned teaching econometrics for 10 semesters in a computer classroom, caveats that would apply to any course taught in such a classroom. How such classrooms might comparably transform the teaching of other economics courses is the fundamental question I leave with readers.
{"title":"Econometrics Lectures in a Computer Classroom","authors":"Michael P. Murray","doi":"10.1080/00220489909595996","DOIUrl":"https://doi.org/10.1080/00220489909595996","url":null,"abstract":"Increasingly, economics professors are provided access to computer classrooms. Teaching in such classrooms is both exciting and daunting: exciting because the new technologies promise the possibility of better teaching; daunting because the technology and its promise pose new challenges and create new pitfalls for teachers of economics. I eagerly champion using computer classrooms to teach econometrics better, but I also warn that these classrooms are not a panacea. Teaching in a computer classroom is very costly in faculty time and institutional dollars; only marked improvements in students' learning can justify such expense. In this article, I describe how the computer classroom has transformed my teaching of econometrics. I share caveats I have learned teaching econometrics for 10 semesters in a computer classroom, caveats that would apply to any course taught in such a classroom. How such classrooms might comparably transform the teaching of other economics courses is the fundamental question I leave with readers.","PeriodicalId":51564,"journal":{"name":"Journal of Economic Education","volume":"31 1","pages":"308-321"},"PeriodicalIF":0.9,"publicationDate":"1999-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81539937","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}