The Price Is Yours
1 min read
A hands-on monopoly and price-discrimination activity for Principles of Microeconomics. One student serves as the CEO of the town’s only medicine company, while other students are buyers with private willingness-to-pay cards. Across three stages, the class compares a single monopoly price, different prices for different buyer groups, and a setting in which resale is allowed.
Students see why a single monopoly price can leave mutually beneficial trades unrealized, how group pricing can change output and profit, and why price discrimination requires firms to identify groups and prevent resale. The debrief connects the game to monopoly pricing, deadweight loss, third-degree price discrimination, and policy questions involving market power.
Core concept
Monopoly and Price Discrimination
Game Materials
Instructor Run SheetA step-by-step guide to setup, three pricing stages, expected outcomes, and debrief questions.
DOCX ↓
CEO Pricing SheetA private worksheet for the firm's CEO to test prices and record profit.
DOCX ↓
Buyer CardsPrintable private-value cards for the insured and uninsured buyer groups.
DOCX ↓
Debrief SlidesSlides for connecting the classroom outcomes to monopoly, deadweight loss, and price discrimination.
PPTX ↓