102
Towards Teaching Markets as
Complex Systems: A Web Based
Simulation Assignment
Implemented in NetLogo
Tim Kochanski
Abstract
This paper is based on a simulation model, programmed in NetLogo, that demonstrates changes in market
structure that occur as...
More
102
Towards Teaching Markets as
Complex Systems: A Web Based
Simulation Assignment
Implemented in NetLogo
Tim Kochanski
Abstract
This paper is based on a simulation model, programmed in NetLogo, that demonstrates changes in market
structure that occur as marginal costs, demand, and barriers to entry change.
Students predict and observe
market structure changes in terms of number of firms, market concentration, market price and quantity, and
average marginal costs, profits, and markups across the market as firms innovate.
By adjusting the demand
growth and barriers to entry, students can explore market changes in terms of the output variables
mentioned above.
The exercise allows students to synthesise information from several different chapters of
the text that discuss differing market structures including perfect competition, monopoly, monopolistic
competition, and oligopoly.
Finally, the exercise exposes students to computational methods, simulation,
and a dynamic perspective on t
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