Experiments with Economic Principles . Experiment is followed up with extensive lab report questions in which students must compare the experimental results to the theoretical predictions. Illustrate the effects of prohibitions against buying and selling a good. Bergstrom, Theodore and John H. Miller. Experiments with Economic Principles .
Experiment is divided into three sessions.
Session 1 is a baseline experiment with no unusual rules. Session 2 introduces an imperfect enforcement of prohibition. If a seller brings only one contract to the market manager, it is confiscated and a fine is imposed on the seller. In session 3, the police resell the confiscated drugs to the original buyers at the originally negotiated price. The notions of involuntary and voluntary unemployment are also developed.