Choosing too much consumption at one time lowers the capital stock available for the future which, in turns, limits consumption possibilities in the future. Students are provided with payoff tables representing their production and consumption possibilities. Original experiment is computerized. Economic Experiments in the Classroom . Addison Wesley Longman, 1999.
Students take on the role of borrowers and lenders in a double auction market.
Thus, unexpectedly high inflation benefits borrowers and harms lenders. The experiment is first run with zero inflation to establish a base. Increase the range of uncertainty beyond the three possibilities named above. Economic Experiments in the Classroom . Addison Wesley Longman, 1999.