Introduction: Beaver and Deer

No that we have some game mechanics down, its on to how early economicsts thought about costs. Both Adam Smith and David Ricardo used the same example of the hourly cost of hunting beaver and deer to construct a labor theory of value. This was taken up by Marx and used as the basis for his far more elaborate theory of political economy and business cycles.

Again, go to "bash-economics/games/". As far as I know, the preceeding "http://www." From "games", navigate to "Beaver and Deer" and hit "What to Hunt?" Now you should be able to sign in with your password. Once logged in you may have to navigate back to "What to Hunt?".

Once you have reached the choice page you choose whether you want to hunt either beaver or deer. For our game, we say it takes exactly 4 hours to catch a beaver and two hours to kill a deer. Time passes in foour hour chunks that are two minutes in reak time in the game. When you get home with your animals, you sell it a a price that reflects hopefully reflects the effort you put in.

So in each cycle, your account is credited with the value of your work in currency units. Smith had some lengthy discussion about whether to use currency or wheat-equivalent units for value, which we will skip. Notice that to start with, the market price is fairly judged for the different efforts involved. After a few rounds, however, the price may change and I suggest you change your hunting patterns accordingly. You can do this XXXX.

The object of the game is to accumulate the greatest amount in your account. And then we can study how that happens to see what we think of the labor theory of value.

What to Hunt?