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A Pit Trading Simulaton Approach to Teaching Market Structure
Journal article   Peer reviewed

A Pit Trading Simulaton Approach to Teaching Market Structure

Jeff Brown, Jonathan Clements, Terrance Grieb and Christian West
Journal of financial education, Vol.36(1/2), pp.89-104
04/01/2010

Abstract

Arbitrage Clearinghouses Contracts Federal Reserve Bank FINANCE PEDAGOGY Financial market structures Financial securities Market prices Monetary policy Open markets Outcomes of education
This paper details the use of a pit trading environment to teach students about market structure. As a part of this process, students learn about Iowa Electronic Market (IEM) style contracts and the mechanics of trading in a physical pit environment. We demonstrate that students had a high degree of interest in learning with this structure, and that significant learning occurred for all of our relevant learning outcomes.

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