Protecting Property Rights as a Prerequisite for Successful Real Estate Investment: An Educational Game Approach

Aim and Objectives: Geurts and Jaffe (1996) presented the results from an educational property rights game they created. This game teaches the students how a framework of well-protected property rights leads to more productive real estate investments. The aim of this paper is to improve on the explanations provided in that paper.Design / Methods / Approach: This is an in-classroom educational game, where students simulate production using real estate under varying levels of property rights protection. As such this is an interactive teaching method with a self- directed learning approach.Findings: It shows that the better their property rights are protected the higher the productivity. Although most of the actions of the students during the game could be explained, some of the outcomes seemed not rational. Indeed, Geurts and Jaffe wrote “We have noticed that peer pressure to work can hamper this process” with regards to irrational behavior. The authors of this paper attempt to expound on some of the unexplainable behavior in the Geurts and Jaffe paper and in addition provide some alternative views for the explanations provided in that paper, using a behavioral analysis.Research Limitations / Implications: Educational games are typically used to explain some theoretical concept in a self-directed learning approach, however the theory is often based on rational behavior. The outcomes of the educational game can therefore be different from what the theory predicts, which can be considered a limitation to the approach. However, a behavioral analysis, as presented in this paper, might explain the outcomes better and provide for a better learning experience for the students, since the outcomes can fully and/or better explained.Originality, Rigour and Significance of the Study: This is an original game developed by one of the authors of this paper, which was published in one of the top peer-reviewed journals of the field, namely the Journal of Real Estate Finance and Economics. This is of course no guarantee that this paper is of similar rigor and/or significance, however it shows the relevance of this topic and approach: Teaching students under which circumstances an investment in real estate is most successful.