The authors present two classroom experiments on technology licensing. The first classroom experiment introduces the concept of royalty stacking. Students learn that noncooperative pricing of royalties for complementary intellectual property rights leads to a double-marginalization effect. Cooperation solves the problem and is welfare-improving.…

The derivation of conditions necessary for Pareto efficient production and exchange is a lesson frequently showcased in microeconomic theory textbooks. Traditional delivery of this lesson is, however, limited in its scope of application and can be unnecessarily convoluted. The author shows that the universe of application is greatly expanded and a…

The introduction of the concept of network effects is useful at the principles level to facilitate discussions of the determinants of monopoly, the need for standards in high-tech industries, and the general complexity of real-world competition. The author describes a demonstration and an extension that help students understand how consumers make…

Describes a simple activity where students staple sheets of paper together into packets in order to demonstrate the concepts of labor specialization, the production curve, diminishing marginal product, and fixed inputs. (JDH)

Argues that the aggregate good is a powerful pedagogical device in economics. Uses a simple graphical analysis that demonstrates to the student the concept of an aggregate good, that preferences can indeed be collapsed from many goods to two. (DB)

This classroom exercise illustrates the Tiebout (1956) hypothesis that residential sorting across multiple jurisdictions leads to a more efficient allocation of local public goods. The exercise places students with heterogeneous preferences over a public good into a single classroom community. A simple voting mechanism determines the level of…

Presents a brief classroom demonstration illustrating Bertrand price undercutting by outlining the experiment, discussing the game theory solution and experiences, and presenting related literatures. States that students remember the lesson because of the significant amounts of money each could have earned. (JEH)

Argues that, although most economics textbooks' explanations of imperfect competition may involve three to five models, the concept can be taught using a single, simple model. Uses several business/economic examples as illustrations. (DB)

Demonstrates how marginal benefit curves can be used in the classroom to illustrate income and substitution effects. Uses tables to explain choices, income effects, and demand curves. Provides explanations for terms and clarifies concepts for teaching methods for traditional subject matter. Explains that this technique allows a rigorous…

Observes that students in introductory and intermediate economics courses often have difficulty understanding concepts of trade and budget deficits. Presents a graphical technique to be used as a framework for teaching these concepts in the classroom. Claims that this technique is effective in other comparative statistics exercises. (NL)

Maintains that a proper understanding of the Augustin Cournot model of imperfect competition and strategic interactions among firms in various contexts is essential for economics education. Although most models rely on complicated algebra, this one requires nothing more than high school level geometry. Includes a graphical analysis. (MJP)