But over the years I've become more and more convinced that classroom experiments are even more interesting to do, in a sense, the exact opposite. Many fundamental (micro)economic concepts may seem clear and obvious, especially to us professional economists, when explained in a textbook or a lecture but can be counterintuitive to students. I like to think that playing the role of a decision-maker in such a situation and experiencing the trade-offs and incentives and uncertainties, is much more insightful and leads to better comprehension of the underlying ideas.
My favourite example of this is the simple competitive market equilibrium. You can explain how this is supposed to work by drawing a demand and a supply function on the board, maybe create a little bit of a background story, and then it is fairly easy to show that in a well-functioning market the equilibrium price and quantity will be there where the two lines cross. My belief is that by creating a simple induced value market and putting students in the shoes of one of the participants and have them try to maximize their profits, they will gain a better understanding of the reasons and mechanisms behind why the equilibrium is the equilibrium.
I like to think that in particular on a beginner level this second approach of taking active part in the economic situation and experiencing the forces and incentives that make the equilibrium become the equilibrium is very useful for getting to understand economics. And also not necessarily less fun than the games designed to make the students aware of their irrational behaviour. But you often need to have more than a basic knowledge of economic theory to understand why something is irrational. In these workshops I like to mix these two approaches up a bit - the third game this time was a Common Value Sealed Bid Auction where there was a lot of overbidding as expected - and that always seems to work out pretty well.
(Photos by Praveen Kujal)