The MACM Software
The web tool has been used to teach students about the Capital Asset Pricing Model (CAPM) and is based on work by Prof. Paul Adams (Univ. of Cincinnati), Prof. Brian Kluger (Univ. of Cincinnati), and Prof. Mark E. McBride (Miami University). Students are given portfolios of a set of risky assets. Each round the students can place limit orders in call markets for each asset. At the end of the experiment, the realize valued of the assets can be determined using any random process the instructor wishes (e.g., a bingo cage drawing of random numbers). The realized value of the assets can be entered and the final value of student portfolios are calculated.
The software is available for non-commerical use by instructors. The software is written using the freely available open-source code of PHP and MySQL. Installation of the software on a web server that supports PHP and MySQL involves moving the files to a directory on the web server, changing one configuration file, and accessing a web page.
For sample screen shots, see the instructions in the Resources section of this site.
Paper reviewers should go to the Resources section to login to the sample experiments.
PEER Article (July 24, 2006)
An article describing MACM and its use in the classroom has been published in the Perspectives on Economic Education Research.
Classroom Based Version (Sept. 1, 2005)
Excel spreadsheets to assist running a double oral auction version of the multiple asset call market are now available. These files allow the instructor to setup and run the experiment during class. See the downloads area to get the files.
Updated Versions (May 21, 2003)
An updated version of the software has been posted. The new version fixes some small bugs, improves and simplifies the installation process, and adds the ability to upload new experiments from a text file.
FMA Teaching Innovation Award (Oct. 22, 2000)
A version of the experiments used in teaching the CAPM model won the Best Innovation in Teaching Finance Paper Award from the Financial Management Association for the year 2000.