Market Magic
Faculty Contributors: W. Bruce Allen, Keith Weigelt
Students learn the concepts of managerial economics by buying and selling in several markets designed as double-sided auctions
- About Market Magic
- More Details
- Administrative Tools
A Market Magic simulation consists of several markets that are designed as double-sided auctions; the number and duration are determined by the faculty member. Students receive different roles and reservation prices for each market and may complete only one transaction per market. Once they've completed a transaction, the application computes and displays their profit or surplus.
Each market contains a variable number of rounds. A round ends when a transaction occurs; thus the total number of possible rounds in a market is entirely dependent on the frequency of sales. Once a market terminates, there is a time interval which allows the students to review the activity of the previous market and provides a preparation period for the next market.
The interface components are described below:
- The 'Profile' box displays the user's role and reservation price for the current market.
- The 'Enter Orders' box is role-dependent. For sellers, it displays the best current bid, an input area for asks and a 'Sell Now' button. For buyers, it contains the best current asking price, an input area for bids and a 'Buy Now' button.
- The 'Market History' box displays all the clearing prices for the entire market.
- The 'Market Activity' box displays the time remaining in the market and lists all the bid and ask prices for the current round.
