Encouraging Scientific Inquiry Through Experimental Lab Reports: An Example of Conducting Experimental Auctions to Demonstrate WTP/WTA Disparity Hillary M. Sackett, Ph.D. Westfield State University Prepared for The 9 th Annual Economics Teaching Conference October 24 – 25 Austin, TX
19
Embed
Encouraging Scientific Inquiry Through Experimental Lab Reports: An Example of Conducting Experimental Auctions to Demonstrate WTP/WTA Disparity
Encouraging Scientific Inquiry Through Experimental Lab Reports: An Example of Conducting Experimental Auctions to Demonstrate WTP/WTA Disparity. Hillary M. Sackett , Ph.D. Westfield State University Prepared for The 9 th Annual Economics Teaching Conference October 24 – 25Austin, TX. - PowerPoint PPT Presentation
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Encouraging Scientific Inquiry Through Experimental Lab Reports: An Example of Conducting Experimental Auctions
to Demonstrate WTP/WTA Disparity
Hillary M. Sackett, Ph.D.Westfield State University
Prepared for The 9th Annual Economics Teaching ConferenceOctober 24 – 25 Austin, TX
Outline• Background
– Course Design– Classroom Experiments
• Two-week Module Simulation– Class 1: Lecture– Class 2: Problem Solving– Class 3: Classroom Experiment– Class 4: Discussion
• Thematic two-week modules:– Externalities & Public Goods– Efficiency and Open Access– Valuing Environmental Benefits and Costs– Monitoring and Enforcement– Incentive-based Policy and Pollution Trading
Classroom Experiments
“Learning is too often passive in economics, with a vast difference between abstract (yet
powerful) theoretical models and the busy nature of everyday economic activity”
- Charles Holt
Classroom experiments enhance the effectiveness of the Socratic method, by exposing students directly to
the economic environments they study.
Class 1: Lecture• Efficiency Standard
– Maximize Net Benefits• Two categories of Benefits
– Market Benefits– Non-market Benefits = Use + Option + Existence Value
• Consumer Surplus– Welfare Analysis– WTP for Improvement vs. WTA for Compensation
• WTP/WTA Disparity– Prospect Theory– Substitution– WTA >WTP – standard practice to use WTP