This week, we add an asymmetric information trading game, derived from Biais, Hilton, Mazurier, Pouget (RES 2004) and Plott & Sunder (Econometrica 88).

The paper is available on the site of the journal, and the game is in the “finance section” on our site.

Abstract of the paper:

“We measure the degree of overconfidence in judgement (in the form of miscalibration, i.e. the tendency to overestimate the precision of one’s information) and self-monitoring (a form of attentiveness to social cues) of 245 participants and also observe their behaviour in an experimental financial market under asymmetric information. Miscalibrated traders, underestimating the conditional uncertainty about the asset value, are expected to be especially vulnerable to the winner’s curse. High self-monitors are expected to behave strategically and achieve superior results. Our empirical results show that miscalibration reduces and self-monitoring enhances trading performance. The effect of the psychological variables is strong for men but non-existent for women.”

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This week we are adding the Red/Green Simulation, by James R. Bruehler, Alan P. Grant, and Linda S. Ghent (Journal of Economics and Finance Education 2017).

The paper is available on the site of the (open access) journal, and the game is in the “externalities and public goods section” on our site.

Abstract of the paper:

“Collective action problems are at the heart of many economic issues. Often, students have trouble comprehending how society ends up with a less than optimal outcome, and may incorrectly assume that someone must want the outcome that occurs. Correcting this error is made difficult by the biases that students bring to these issues.
The Red/Green simulation demonstrates the tension between self-interest and the social good in a context-free manner allowing students to see that these sub-optimal outcomes may not be desired by anyone, but instead can result from unhealthy systems of incentives.”

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This week, we are adding a 4-players 2D Hotelling Pricing game.

Another version exists as a single game vs robots (whose actions are based on past human decisions), in the monoplayer section.

An extension of the game, in which you will be able to choose your location, will be released before summer.

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This week, we are adding a new simulation about horizontal differentiation, based on a linear city model with exogenous price (https://economics-games.com/games , last game in the monoplayer section)

We will soon add another, on the Hotelling model with endogenous prices and quadratic transportation costs.

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Here are the current top 25 scores for the two competition simulations of the fourth week of the MOOC “Manage Your Prices” , on Sunday, February the 12th, 5.30PM GMT.

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This week, we are adding “The Carbon Trading Game” by Roger Fouquet (Climate Policy 2003), on our site, in the “Externalities and public goods” section.

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Here are the current top 25 scores for the two simulations of the second week of the MOOC “Manage Your Prices” , on Tuesday, January the 31st, 8PM GMT.

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This week, we are adding “Patents and R&D: A Classroom Experiment” by Amy McCormick Diduch ( International Review of Economics Education 2010), on our site, in the industrial organization section.

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