Reflections on ten years of using economics games and experiments in teaching

In this paper, the author reflects on his 10 years’ experience of using games and experiments and in the process develops a type of practitioner’s guide. The existing quantitative and qualitative evidence on the impact of using games on student learning is reviewed. On balance, a positive effect, on measures of attainment, is found in the literature. Given these findings, it is surprising that there is also evidence in the UK and US that they are not widely used. Some factors are discussed that might deter tutors from employing them. Unsurprisingly, one of these is the additional cost, which might make the use of online games seem more attractive, given the way results can be automatically recorded. However, some relatively low-cost paper-based games were found to have significant advantages. In particular, they appear to facilitate social interaction which has a positive impact on student motivation and learning. One popular and effective paper-based game is discussed in some detail. A number of recommendations are provided on how to implement the game in order to maximise the learning benefits it can provide. Some ideas on how to maximise the learning benefits from using games more generally are also considered

Emergence of long memory in stock volatility from a modified Mike-Farmer model

The Mike-Farmer (MF) model was constructed empirically based on the continuous double auction mechanism in an order-driven market, which can successfully reproduce the cubic law of returns and the diffusive behavior of stock prices at the transaction level. However, the volatility (defined by absolute return) in the MF model does not show sound long memory. We propose a modified version of the MF model by including a new ingredient, that is, long memory in the aggressiveness (quantified by the relative prices) of incoming orders, which is an important stylized fact identified by analyzing the order flows of 23 liquid Chinese stocks. Long memory emerges in the volatility synthesized from the modified MF model with the DFA scaling exponent close to 0.76, and the cubic law of returns and the diffusive behavior of prices are also produced at the same time. We also find that the long memory of order signs has no impact on the long memory property of volatility, and the memory effect of order aggressiveness has little impact on the diffusiveness of stock prices.Comment: 6 pages, 6 figures and 1 tabl

Computing welfare losses from data under imperfect competition with heterogeneous goods

We study the percentage of welfare losses (PWL) yielded by imperfect competition under product differentiation. When demand is linear, if prices, outputs, costs and the number of firms can be observed, PWL is arbitrary in both Cournot and Bertrand equilibria. If in addition, the elasticity of demand (resp. cross elasticity of demand) is known, we can calculate PWL in Cournot (resp. Bertrand) equilibrium. When demand is isoelastic and there are many firms, PWL can be computed from prices, outputs, costs and the number of .rms. In all these cases we find that price-marginal cost margins and demand elasticities may influence PWL in a counterintuitive way. We also provide conditions under which PWL increases or decreases with concentration

Selection of workers and firm heterogeneity

A model based on differences between workers regarding their preferences for wage and leisure drives the heterogeneity of firms result. The more industrious workers are driven to small firms due to free riding in large firms. An industry consisting of small and large firms turns out to produce more output than an industry consisting of only large firms. Some comparative statics results are derived with respect to the size of large firms, the productivity difference between firms, and monitoring capabilities

On the future of astrostatistics: statistical foundations and statistical practice

This paper summarizes a presentation for a panel discussion on "The Future of Astrostatistics" held at the Statistical Challenges in Modern Astronomy V conference at Pennsylvania State University in June 2011. I argue that the emerging needs of astrostatistics may both motivate and benefit from fundamental developments in statistics. I highlight some recent work within statistics on fundamental topics relevant to astrostatistical practice, including the Bayesian/frequentist debate (and ideas for a synthesis), multilevel models, and multiple testing. As an important direction for future work in statistics, I emphasize that astronomers need a statistical framework that explicitly supports unfolding chains of discovery, with acquisition, cataloging, and modeling of data not seen as isolated tasks, but rather as parts of an ongoing, integrated sequence of analyses, with information and uncertainty propagating forward and backward through the chain. A prototypical example is surveying of astronomical populations, where source detection, demographic modeling, and the design of survey instruments and strategies all interact.Comment: 8 pp, 2 figures. To appear in "Statistical Challenges in Modern Astronomy V," (Lecture Notes in Statistics, Vol. 209), ed. Eric D. Feigelson and G. Jogesh Babu; publication planned for Sep 2012; see http://www.springer.com/statistics/book/978-1-4614-3519-

Why we can no longer ignore consecutive disasters

In recent decades, a striking number of countries have suffered from consecutive disasters: events whose impacts overlap both spatially and temporally, while recovery is still under way. The risk of consecutive disasters will increase due to growing exposure, the interconnectedness of human society, and the increased frequency and intensity of nontectonic hazard. This paper provides an overview of the different types of consecutive disasters, their causes, and impacts. The impacts can be distinctly different from disasters occurring in isolation (both spatially and temporally) from other disasters, noting that full isolation never occurs. We use existing empirical disaster databases to show the global probabilistic occurrence for selected hazard types. Current state‐of‐the art risk assessment models and their outputs do not allow for a thorough representation and analysis of consecutive disasters. This is mainly due to the many challenges that are introduced by addressing and combining hazards of different nature, and accounting for their interactions and dynamics. Disaster risk management needs to be more holistic and codesigned between researchers, policy makers, first responders, and companies

Self-interest And Public Interest: The Motivations Of Political Actors

Self-Interest and Public Interest in Western Politics showed that the public, politicians, and bureaucrats are often public spirited. But this does not invalidate public-choice theory. Public-choice theory is an ideal type, not a claim that self-interest explains all political behavior. Instead, public-choice theory is useful in creating rules and institutions that guard against the worst case, which would be universal self-interestedness in politics. In contrast, the public-interest hypothesis is neither a comprehensive explanation of political behavior nor a sound basis for institutional design