Monday, December 05, 2005

Comparative Advantage Game

I stumbled across this game when reading about Avocados in Mexico. In a simple manner, it explains and demonstrates comparative advantage, a key basis for the argument for Free Trade. Play the game (it takes about 5 minutes) and see how compartive advantage can work even for someone who is disadvantaged when it comes to trading.

When you come to the conclusion of the game, you will see a link that explains more about comparative advantage and recomends readings on the topic.

2 comments:

Chiara said...

I played the game, but could only get a score of 60 pairs of coconuts and fish--that was with all my time being allottted to gathering coconuts, and then trading half of them away for an equal number of fish... probably not the best idea... How did someone get 79?

Unknown said...

Remember to offer him a better deal than 1 to 1. He will accept anything that leaves him better off than he would be had he not traded with you.