here are standard economics courses and then there are those taught by Daniel Levy. Professor Levy is a dynamic and engaging teacher who turns the dismal science on its head (while standing on a chair) and transforms the study of economics into a true adventure. This teaching talent was on full display last in early September as Professor Levy lead ISET students through a "Competitive Bazaar Simulation”. Starting with a short video from the movie “Trading Places”, the exercise continued with students divided into two groups of buyers and sellers trying their best to buy (or sell) a piece of khachapuri for an outrageously low (or high) price.
Like every market, this simulation exercise had its limitations. Each seller had their own cost of production and was not allowed to sell the product on price less than the cost. Meanwhile, each buyer had a budget (their willingness to pay) for the product and Khachapuri price could not exceed this budget. The game involved several rounds in which buyers and sellers had different costs of production and budgets. Prof. Levy’s assistants were responsible for recording the deals and constructing the graphs showing the market price development. The graphs revealed that the first deals were made with higher or lower than equilibrium price, and at the end, prices started approaching an equilibrium, as should be the case in each competitive market.
The exercise identified two winners: capitalist of the year, who demonstrated remarkable ingenuity in being able to sell imaginary Khachapuri at an outrageously high price; and the thriftiest shopper who managed to buy the same Khachapuri at a lowest price possible.
To have a professor the caliber of Daniel Levy teaching at ISET is special. He is a well-known professor in American economic circles, teaching at Emory University and giving interviews to economics programs like NPR's “All Things Considered” and “Planet Money.” He is also a fixture in Israel’s economics scene regularly drafting articles for Israeli media and teaching at Bar-Ilan University.
ISET is fortunate to have such unique opportunities and access to such high-quality instruction – one of the many reasons why the ISET education is one of the highest quality graduate programs in the South Caucasus.
