Collaborative Teaching Pedagogy Used in Conjunction with a Simulation Economy R. RAEHSLER, M. HAGGERTY, AND E. CAROPPRESO* ABSTRACT In order to enhance the interest and motivation for students to learn introductory economics, the authors have initiated the creation of a simulation game in which the students are the actors in a self-contained class economy. The students are placed in competitive groups in which they have the role of a finn that produces a good and a household that consumes products. A collaborative learning pedagogy with the simulation was also instituted. Using collected data that measure the impact of this alternative approach, compared to a class taught without the collaborative exercises or the simulation game, it was found that students enjoyed the simulation game and found it worthwhile. Overall, the simulation game and this new approach to teaching introductory economics did not have a negative impact on academic achievement. (JEL A22) INTRODUCTION Economics as an abstract and theoretical field of study presents major obstacles to learning for introductory students, resulting in a frequent lack of comprehension and dissatisfaction of the economics curriculum by the students. In response to this criticism of the common pedagogy of introductory economics, Siegfried et al. [1991] make a number of suggestions. Specifically, this paper attempts to address two of their concerns: to "enrich and enliven courses with a limited number of applications of concepts and theoretical constructs" and to "make connections between theory and its empirical counterparts." The authors have responded to these concerns in a number of fashions. The first is the creation of a computer game in which the students are the actors in a self-contained class economy. The second is the use of a collaborative learning pedagogy. Computer-assisted instruction for introductory economic classes ranges from computerized tutorials and study guides to simulations of the macro economy. The game created for this study attempts to allow the student to be an economic actor in an economy consisting of the students in the economics class. The simulation economy in essence mirrors a simple economy portrayed by the circular flow model. The students act in groups and independently as both households and finns. Students have the dual role of making individual consumption decisions (reflecting individual accountability in the cooperative model) and participating in the collective decision-making processes of the firms their groups represent (reflecting group interactions and interdependence in the cooperative model). Within the economy, students make a variety of decisions, any of which will impact on the actual development and structure of their classroom economy which will, in turn, influence both independent and interdependent future decisions. Ultimately, the game is "won" in terms of students' attempts to maximize the value of their firms as well as maximizing their individual satisfaction or personal value (both independent and interdependent accountability). * Clarion University of Pennsylvania. 183