Institutions II

Materials for class on Wednesday, March 7, 2018



Download the slides from today’s lecture.

First slide

International Trade Game

This game was originally developed by the international NGO Action Aid and adapted by Dr. John Sloman from the University of the West of England.


In the 8:00 section, lower income countries (C1 and C2) vastly outperformed the rich countries (A1 and A2). In the 9:30 section, both A1 and A2 outperformed everyone else. A1 and C1 merged countries (hence C1’s $0 outcome), and A2 blew everyone away, earning more than 50% of the total global output.

Section Country Total earnings % of world earnings
9:30 A2 $130,750 52.6%
8:00 B1 $26,900 27.0%
8:00 C1 $26,100 26.2%
8:00 C2 $21,700 21.7%
9:30 A1 $51,400 20.7%
8:00 A1 $17,700 17.7%
9:30 B1 $41,700 16.8%
9:30 C2 $24,950 10.0%
8:00 A2 $7,400 7.4%
9:30 C1 $0 0.0%

This distribution of wealth created a society with a Gini coefficient of 0.47:

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