Experiment 1

Macroeconomics

Deadline: 24.00 27 February, 2023

VeconLab Input Demand and Marginal Value

Throughout the course we will use the free VeconLab tools to carry out experiments. They are pro-
vided by the researchers at Virginia University and they were designed to help understanding impor-
tant macroeconomic concepts.
Experiments are games where you learn by playing. They really are fun ways to learn new concepts
and theories. Most of the experiments are designed to simulate topics in microeconomics, there are
only a few that are relevant for a macro couse. Therefore we do not use it every week, but occasionally
when it is appropriate.
The first experiment we make is an individual task therefore it is better to do at home. However,
we will discuss the results of this experiment in the classroom. Also, you can gain bonus points for
the course just by participating in the game.
Here are the details. The experiment I ask you to run now is a so-called ”Input Demand and
Marginal Value” experiment, where you take on the role of an employer and you make decisions
regarding how many workers you are going to hire for production.
So the practical issues of this task are the followings.

1. Please visit the following website: veconlab.econ.virginia.edu/login.html.

2. At the first visit, click on <Login> and enter makl1. Click <Submit>.

3. Next enter your First Name where it is indicated, however, please enter your Neptun code
where Last Name is asked. You may want to give a password here. It is useful if you need
to reenter for any reason later, you can use this password. Click on <Continue>.

4. Next the website confirms your login data. Click on <Continue with Instructions> and
read the following pages carefully. In these pages you will learn about the decision problem
in detail. The explanation includes examples, too, and the final page summarizes all relevant
information of the game. You may want to make notes here, however, the relevant information
will always be on the current page of the site.

5. After reading the explanations please click on <Finished with Instructions> and you can
start the game. Just as until now, the instructions on the screen will guide you where to click.

6. Please go through the experiment until all round is over and you reach the final page where
you learn about your final earnings of the game and also that now you can close the browser
window.

About the earnings: the dollars you earn in this game are so-called ”experiment dollars”, not real
dollars! However, you can exchange experiment dollars into course grade. In fact, your bonus points
will be related to the experiment dollars that you end up with.

1
 Your results in this game will be translated into course bonus using the following way. Solving
this experiment, you have 1.5 point (no matter the result). The additional half point will be calculated
based on your results, see the table below for the details:

Experiment dollars participation bonus variable bonus total bonus

≤150 1.5 0.0 1.5
>150 but ≤160 1.5 0.1 1.6
>160 but ≤170 1.5 0.2 1.7
>170 but ≤180 1.5 0.3 1.8
>180 but ≤190 1.5 0.4 1.9
>190 1.5 0.5 2.0