Application Exercises


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Negative externalities and property rights
Marcelo Clerici-Arias, Stanford University
Game-theoretic modeling of a negative externality scenario, with applications of Coase theorem and the Pigovian tax.

Economics Topics: Microeconomic Topics:Taxes, Game theory, Additional Topics:Externalities

Oligopoly
Marcelo Clerici-Arias, Stanford University
Investment decisions by two duopolists. Create payoff matrix with stylized payoffs and strategies, followed by finding Nash equlibria.

Economics Topics: Microeconomic Topics:Monopoly and other market structures, Game theory

Monopolies and innovation
Marcelo Clerici-Arias, Stanford University
Uses Bayer as an example of an innovative firm that relies on intellectual property to recover fixed research and development costs, and make a profit.

Economics Topics: Microeconomic Topics:Competitive markets, Firm production and costs, Monopoly and other market structures

Regulating a natural monopoly
Marcelo Clerici-Arias, Stanford University
Analysis of different types of regulation for a natural monopoly

Economics Topics: Microeconomic Topics:Regulation and antitrust, Firm production and costs, Monopoly and other market structures

Costs of Production
Galit Eizman, Harvard University
This activity encourages team discussion about the structure of production costs, the difference between variable costs and fixed costs, and how the price of the final product should reflect these costs. The ...

Economics Topics: Microeconomic Topics:Firm production and costs

Income changes in the supply-demand model
Galit Eizman, Harvard University
This activity encourages team discussion about income changes in the supply and demand model and their influence on the demand curve, price and quantity. The students will discuss energy prices in China, will ...

Economics Topics: Microeconomic Topics:Competitive markets

Comparative Advantages
Galit Eizman, Harvard University
This activity encourages a team discussion about the definition and implementation of Ricardo's theory of comparative advantages. Using the real life story of "Moneyball" (based on the book, the ...

Economics Topics: Microeconomic Topics:Firm production and costs

Income Inequality
Galit Eizman, Harvard University
This activity encourages team discussion about income distribution, how to measure inequality, what would be an appropriate tax policy to reduce inequality and what considerations should be taken into account while ...

Economics Topics: Additional Topics:Inequality

Negative Externalities
Galit Eizman, Harvard University
This activity encourages team discussion about negative externalities- the case of disturbing noise and air pollution from the airport to nearby neighborhoods. The discussion raises possible solutions and the ...

Economics Topics: Additional Topics:Externalities

Policy responses to manage employment with a minimum wage
Ioanna Avgeri, ONCAMPUS Amsterdam
In this exercise students explore a scenario where minimum wage has a potential negative impact on economic activity. They are called to investigate four different policy responses and determine their impact in the ...

Economics Topics: Microeconomic Topics:Labor markets, Macroeconomic Topics:Unemployment

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