- Double Marginalization - This experiment illustrates
the double marginalization problem and how vertical integration solves it.
Right of First
Refusal Experiment - This experiment illustrates how the presence of a
"meet or release clause" in a contract affects bargaining outcomes.
- Lobbying Congress
- Based on the McCain-Schumer legislation, this experiment illustrates
rent-seeking games as well as how the timing and publicity of rent-seeking
expenditures can foreclose opportunities for certain interest groups to
to Sell a Company - This experiment illustrates how differences in the
form of the "auction" for a company affect shareholder returns. Specifically,
the difference between selling a company in exchange for cash as opposed to
shares is highlighted.
Value of Education - This experiment illustrates how signaling works. Even
though there are two equilibria in the model (pooling and separating),
students end up converging to the separating equilibrium. They're typically
surprised in retrospect at the possibility of pooling and about the fact that
(under these parameters), signaling has left all worse off.
Venture Capital Financing - This experiment illustrates screening
contracts. A variation, which will be included in a revision of the
experiment, is to let entrepreneurs and banks bid solely in interest rates.
This variation illustrates credit rationing.