Wealth Distribution and Imperfect Factor Markets: A Classroom Experiment

Abstract

The author presents a simple exercise to demonstrate how initial property distribution can affect final wealth patterns in developing areas of the world. The simulation is a variant of the Monopoly board game in which students role play different members of a market in which they each face different rules of credit access and salary patterns. The property distribution and new mortgage rules reflect the reality of many developing areas. The simulation can be completed in one full class period and has proven successful in making students more sensitive to wealth distribution issues. Students have suggested several variations of this simulation to make it applicable across more settings.

Key Words:

• market institutions
• Monopoly
• wealth distribution

Additional information

Notes on contributors

Denise L. Stanley

Denis L. Stanley is an assistant professor in the Department of Economics at California State University, Fullerton (e-mail: [email protected]). The author appreciates the assistance of all the students taking Economics 323 at the University of Tennessee between the spring 1996 and fall 1998 semesters, as well as the helpful comments of Michael Carter, Jon Jonakin, and Stephen Stewart.