Participatory Economics Classroom Simulation

Abstract

In this paper, I describe how to conduct a classroom simulation based upon a Participatory Economy. A Participatory Economy is a potential third option for organizing economic activity, one that is neither market based nor centrally planned. Students will take part in an iterative planning procedure as they make production and consumption decisions collectively, inside a one-person-one-vote paradigm. The process is time consuming, but with the direction of this article can be completed in a 50-minute class period. I include student handouts and discussion questions in the appendices. This exercise is valuable not only because it helps students imagine other alternatives to economic organization, but also because it makes explicit the great deal of coordination achieved automatically in a market that is fully cleared. Students usually come away with a deeper understanding of both a participatory economy and a market economy.