A Clever Classroom Exercise
| Peter Klein |
J. W. Verret, guest blogging at the Conglomerate:
I thought that I would talk about an exercise I conducted on my first day teaching Securities Regulation.
We ran an auction for a “gift certificate for dinner for two, plus drinks, at a local restaurant,” the proceeds of which would be donated to the American Cancer Society. I informed them, by way of a disclosure statement via email, that I informally asked some friends on the faculty what they would bid based on the same limited information that the students received. I told the students that the result of that informal survey was an average bid of $93.50, and I mentioned that if the students obtained the item for lower than its value they might even sell it for a profit. My disclosure email was riddled with the sort of dry and equivocal statements one might find in a registration statement, and my first day sales pitch was a little more puffed up.
The result: The winning bid was $85 for a $10 gift certificate to McDonald’s. I think it got their attention, which was a good intro to my overview of what we’ll cover in the class.
Who else wants to share an effective classroom experiment or exercise? (Russ Coff has also suggested some here.)