The IEM Movie Box Office Market: Integrating Marketing and Finance Using Electronic Markets

Abstract

The Iowa Electronic Markets Movie Box Office Market forecasting and trading exercise is an important new form of Internet-based experiential learning. In this experience, students proceed beyond problem analysis to decision making in a situation in which their actions have real-dollar implications. From the exercise, students develop important marketing, finance, and technology skills. Instructors benefit from having a unifying activity to illustrate interesting aspects of new product development, pricing, and decision-making biases.