Click and Think: Actively Teaching Duopoly

Jeremy T. Schwartz, Ronald F. McPherson and Raymond Brastow
    This paper describes how to use a spreadsheet as a tool for teaching the economic concept of duopoly. First it introduces students to the spreadsheet tutorial by presenting them with the decision of a monopoly choosing its profit-maximizing quantity. Then it extends the example to competitors in a two-firm market where students work in pairs to learn how duopolists reach the Cournot-Nash equilibrium outcome. Students can alter the demand and cost structure in a user-friendly manner to see the effect of their choices on the market.