The regulation dice game: Teaching the effects of entry barriers on wealth creation using an interactive class activity

Abstract

There is a well-known connection between the barriers to entry created by an overburdensome regulatory climate and lower levels of productivity that create less economic growth. Many economics students are under the impression that regulations are designed to protect the workers and consumers as well as improve product quality, so they are often uninformed about the adverse effects of regulations and are sometimes reluctant to accept the idea that regulations such as occupational licensing can work to the detriment of those in that occupation and the economy as a whole. The author of this article presents an interactive class activity, providing the instructions and worksheets needed to employ it in the classroom, and which illustrate the costs and benefits of various regulatory environments.