An In-Class Economic Game . The firms compete on quantity only. The game is played over several weeks where the last round is unknown to students. Collusion is not permitted. The objective is for firms to make profit.
Students earn extra credit points depending on the size of their profits.
A few minutes every class, over several weeks. A Classroom Experiment . Each student is then given a slip of paper with private information regarding the actual effectiveness of the drug. Again, each student is given a slip of paper with private information regarding the FDA approval decision on the drug. At least three students should get a slip of paper indicating the drug was not approved.