Publication: Journal of Economic Education
Volume: 37
Issue: 4
Page: 483
Author(s): Tod S. Porter, Kriss Schueller, Teresa Riley, Rochelle Ruffer, and Ebenge Usip
Address (Principal Author):
Department of Economics
Youngstown State University
1 University Plaza
Youngstown OH 44555
Fax Number: 330-941-3431
Office Phone: 330-941-2304
Internet Address (Principal Author): tsporter@ysu.edu
Title: MarketSim at YSU: A Simulated Economy for Microeconomics
URL: http://marketsim.ysu.edu/Simulation/MarketSimWebSite/simhome.htm
Descriptive Note:
MarketSim is designed to help students better understand microeconomic theory by having them take on the roles of consumers and producers in a simulated economy accessed via the Internet. Exchanges are made by students posting and accepting offers at terms they choose. In the “Simultaneous Play” version available on the site students must participate in a game at the same time. The simulations were designed for use in principles classes, but can also be used in intermediate theory and entry-level MBA classes.
MarketSim includes two simulations: Jeremy's Market and Adam's Market. Jeremy's Market is a barter economy. At the start of each period, each household is allocated 100 hours that can be used to produce goods or consumed as leisure. Households have an incentive to trade their output because groups of households are assigned different production and utility functions. Students must be introduced to one-input production functions and basic consumer choice theory to use the simulation. The simulation will help students better understand consumer choice theory and gains from trade.
In Adam's Market each student is responsible for the actions of a consumer and a firm. Consumers sell labor time to the firms, who use the labor to produce output. The firms can then post offers to sell output to the consumers. Instructors can choose to make the simulation more sophisticated by allowing firms to purchase additional capital, change industries, and issue bonds. Prior to playing Adam’s Market students should be introduced to consumer choice theory, profit maximization, and course material related to any advanced options that are activated.
Both markets include worksheets that help students plan their strategy without having to use the underlying functions. Student performance is scored automatically, and instructors are able to view student records. Instructor and student manuals are available on the site.
Tod S. Porter (e-mail tsporter@ysu.edu), Teresa Riley, and Ebenge Usip are professors in the Department of Economics at Youngstown State University; and Rochelle Ruffer is an associate professor. Kriss Schueller is a professor in the Department of Computer Science and Information Systems at YSU. A commercial, asynchronous version of the program is available from Thomson Learning at http://marketsim.swlearning.com.