Classroom Game on the Theory of Rent Seeking: Some Practical Experience

On the basis of our practical experience in applying the classroom game on rent seeking proposed by Goeree and Holt, we suggest two setup modifications and one extension to the original game. The modifications are intended to increase the teaching value of the classroom game by enlarging the choice space of the teams and further clarifying the welfare consequences of rent seeking. The extension is introduced to show that teams' high risk preference does not result from a misperception of the decision-making problem. Instead, this preference is argued to be the consequence of the rivalrous nature of the game.