Microeconomics and the Board Game Monopoly

All I ever needed to know about microeconomics I learned from the Hasbro board game Monopoly.

Some people, like myself, need practical models in order to understand certain concepts and theories. In our text book The Economy Today it completely ignores the intrinsic value of business decisions because you can’t put a numeric value on it. The game Monopoly™ is all about the numbers. In the game of Monopoly™ you have goals: The object is to bankrupt all opponents. To do so, you must be dedicated and make each decision with the aim of improving your chances and wiping out your opponents.” (Monopoly) In what I will call throughout the paper real life, the goal is the same. Look at the excerpt from an ABC New article called The Virtues of Monopolies.

Ten years ago you wouldn't have found Intel's name on a list of the world's top chip makers. You might not even have heard of it at all. But even back then, it had the mind-set of the monopolist. Today, Intel is virtually alone in the production of microprocessors. Its share of the worldwide market exceeds 79%. Its nearest rival, AMD, has just 11% of the business. What makes Intel the world's greatest manufacturer (not the world's greatest technology company—a silly pigeonhole not worthy of the firm's pre-eminence) is its understanding of how to think like a true monopolist. It doesn't want to be beaten at anything.(Cramer)

I think the game gives some excellent examples of microeconomic theories such as B...