The following post was put together by Professor Schwartz from Baruch College a couple years back, but we wanted to re-share as schools come back into session for the fall semester and instructors are looking for ways to inject excitement in your economics course.
Too many business school students find economics courses boring. Why? Because the subject appears to be far too abstract, far too out of touch with reality, and because traditional teaching methods do not engage them. Professors should be using today’s technology to excite students through a hands-on experience via a school’s trading room. One excellent tool for use in a trading room is TraderEx, an interactive computer simulation program.
TraderEx (a product that I am a co-developer of) is an interactive computer simulation designed to provide participants with hands-on experience in making tactical trading decisions, and implementing them in a marketplace.
The resource traded is equity shares, and several different equity market structures are offered. Simulation exercises are available for economics classes, and these are an invaluable tool for deepening understanding of how markets function, and how traders operate when they meet and transaction with each other in a marketplace.
TraderEx will give traditional economic concepts new life. It offers new insight for understanding demand and supply curves, the gains from trading, and the challenges that traders face in obtaining these gains when implementing their buy/sell decisions in a non-frictionless environment that is replete with transaction costs, regulations, and other blockages. Playing TraderEx in a networked environment where students compete with each other along with machine driven orders can profoundly alter a student’s perception of economics.
Change your students’ attitudes towards your economics courses and make the most of your school’s trading room by including a market based, trading simulation in your curriculum.
TraderEx (Ex stands for Exchange… also for EXCITING!)
Professor Robert Schwartz, Zicklin School of Business @ Baruch College
If you would like to learn more about TraderEX or other simulation programs used in today’s modern finance labs check out the annual conference they sponsor each year in New York.