Don’t Panic!Don’t Panic!

A Hitchhiker’s Guide to A Hitchhiker’s Guide to Computerized Economic Computerized Economic Teaching ExperimentsTeaching Experiments

byby

Dieter BalkenborgDieter Balkenborg

Todd KaplanTodd Kaplan

Tim MillerTim Miller

Why Experiments?Why Experiments?

They are a fun way to learn and to They are a fun way to learn and to teach!teach!

Complements standard methodsComplements standard methods Helps students with low math skillsHelps students with low math skills Enhances credibility of our science Enhances credibility of our science Puts us on the testPuts us on the test

Why Using Why Using Computerized Computerized ExperimentsExperiments ““Free ride” on existing resourcesFree ride” on existing resources Little preparationLittle preparation speedyspeedy Automatic tabulation of resultsAutomatic tabulation of results Some are difficult to do hand-runSome are difficult to do hand-run

Limitations:Limitations: Class sizeClass size Computing facilitiesComputing facilities Time constraintsTime constraints

FEELE; veconlab, FEELE; veconlab, econporteconport Three new names to learnThree new names to learn Easy to “google” forEasy to “google” for We will spend some time on each We will spend some time on each

site and learn how to use themsite and learn how to use them We start with a visit toWe start with a visit tohttp://en.wikiversity.org/wiki/http://en.wikiversity.org/wiki/

Economic_Classroom_ExperimentsEconomic_Classroom_ExperimentsPlease add your experience!Please add your experience!

On “our” wikiversity On “our” wikiversity sitesite1 Why use experiments in teaching 1 Why use experiments in teaching economicseconomics

2 List of Experiments2 List of Experiments 3 Hints for running economic 3 Hints for running economic

classroom experiments classroom experiments 4 Useful Links and Related Literature 4 Useful Links and Related Literature ……Now, let’s google for “FEELE”Now, let’s google for “FEELE”

FEELE Laboratory FEELE Laboratory

is mainly a research lab so look for:is mainly a research lab so look for:

““Access our Website of Teaching Access our Website of Teaching Experiments”Experiments”

View list of experiments (short View list of experiments (short descriptions)descriptions)

Experimenter access (that’s soon you)Experimenter access (that’s soon you)

Participant access (enter now)Participant access (enter now)

You are invited to You are invited to participate in my participate in my experiment!experiment!

Experiments are an experience good!Experiments are an experience good!

1.1. Enter participant accessEnter participant access

2.2. Register for my experiment (no login Register for my experiment (no login yet)yet)

3.3. You need the access codeYou need the access code

““dgb1-dee”dgb1-dee”

which identifies my experimentwhich identifies my experiment

4.4. Read the instructionsRead the instructions

5.5. Good luck!Good luck!

Sample result: BertrandSample result: Bertrand

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1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

Time

Price

Average Price Average Selling Price

Marginal Cost

“I learnt that collusion can take place in a competitive market even without any actual meeting taking place between the two parties.”

Two Firms

Fixed Partners

Two Firms

Random Partners

Five Firms

Random Partners

“Some people are undercutting bastards!!! Seriously though, it was interesting to see how the theory is shown in practise.”

Now register as Now register as experimenterexperimenter

Code word: deadseaCode word: deadsea Next time login with your Next time login with your

assigned password (your initials + assigned password (your initials + number) and password (4-digit number) and password (4-digit number e-mailed to you, KEEP number e-mailed to you, KEEP ACCESSIBLE) ACCESSIBLE)

Set up experimentSet up experiment

New, different suffix for each New, different suffix for each session you run, your username + session you run, your username + suffix = access code for students suffix = access code for students

Name: Bertrand complements, Name: Bertrand complements, DEEDEE

Select type of experiment from Select type of experiment from drop-down box (Bertrand) drop-down box (Bertrand)

Add sessionAdd session

Press “add session”Press “add session” View instructionsView instructions Configure – initially make minimal Configure – initially make minimal

adjustments: complementary, adjustments: complementary, number of subjects, number of number of subjects, number of rounds, number of players, fixed rounds, number of players, fixed partnerspartners

View instructionsView instructions (Run session, View and save results)(Run session, View and save results)

VVeeconlab (Charlie Holt)conlab (Charlie Holt)

FEELE copies this designFEELE copies this design Similar registration procedure Similar registration procedure

and setting up of experiment and setting up of experiment One website for students, one One website for students, one

for participantsfor participants Don’t miss the bubble Don’t miss the bubble

experiment!!!!!experiment!!!!!

Testing a new Testing a new experimentexperiment

I demonstrate here how I can learn I demonstrate here how I can learn about a new experiment byabout a new experiment by1.1.Setting it up with a minimal number of Setting it up with a minimal number of

participantsparticipants2.2.Open a new window for each participant Open a new window for each participant

and register as participantand register as participant3.3.Play against myself by switching between Play against myself by switching between

the open windows (use ALT-TAB to switch)the open windows (use ALT-TAB to switch)4.4.See the results in the instructor’s window See the results in the instructor’s window

CharlieCharlie Holt HoltU. of VirginiaU. of Virginia

Creator of Creator of VVeeconlabconlab Has written textbook Has written textbook

on teaching on teaching experiments.experiments.

Book explains both Book explains both handrun and handrun and computerizedcomputerized

EconPort EconPort (James Cox)(James Cox)

The Best for:The Best for:

1.1. Vernon Smith’s double auction Vernon Smith’s double auction (graphs! Adding excise taxes!)(graphs! Adding excise taxes!)

2.2. Charlie Plott’s asset marketCharlie Plott’s asset market

3.3. General normal form gamesGeneral normal form games

4.4. Extensive gamesExtensive games

Also: handbook, resourcesAlso: handbook, resources

How to use EconPort 1How to use EconPort 1

1.1. Java must be installed, testing Java must be installed, testing necessary!necessary!

2.2. First: Configurations: ADD A First: Configurations: ADD A NEW GROUP (No changes in NEW GROUP (No changes in group “public configurations”)group “public configurations”)

3.3. DO NOT CREATE NEW DO NOT CREATE NEW CONFIGURATION YOURSELF!!CONFIGURATION YOURSELF!!

How to use EconPort 2How to use EconPort 2

1.1. Now go via tab to “Experiments”Now go via tab to “Experiments”2.2. Choose documentation, e.g. on marketlink Choose documentation, e.g. on marketlink

or check the teaching module sections.or check the teaching module sections.3.3. In the documentation you find standard In the documentation you find standard

configurations, e.g. for excise taxes in a configurations, e.g. for excise taxes in a competitive market, which you can add to competitive market, which you can add to your newly created configuration group. This your newly created configuration group. This configuration can then be edited.configuration can then be edited.

4.4. Create a new group in your “experiments”Create a new group in your “experiments”5.5. There you add the configuration as often as There you add the configuration as often as

you want to run a new session. Per group you want to run a new session. Per group you can only have one experiment at a time you can only have one experiment at a time running. running.

6.6. It is a great software!!!It is a great software!!!

ThanksThanks

Thank you for your attendance, I hope Thank you for your attendance, I hope we got you interestedwe got you interested

For short questions you can e-mail me For short questions you can e-mail me on d.g.balkenborg@ex.ac.uk (have on d.g.balkenborg@ex.ac.uk (have teaching experiment in the title!)teaching experiment in the title!)

Possibility of hands-on sessions in UK Possibility of hands-on sessions in UK universitiesuniversities

Thanks to the economic network for Thanks to the economic network for continuous support + Charlie Holt + continuous support + Charlie Holt + James CoxJames Cox