Teaching Economics in a Changing Environment: The Case of Introductory Postgraduate Economic Statistics**This is a thoroughly revised version of the paper presented at the Second Biennial Developments in Business and Economics Education (DEBE) Conference, Edinburgh, UK, 15–16 September 2003. The authors wish to express their gratitude to two anonymous referees for constructive comments and suggestions. Special thanks are also due to Mark Bahr for multivariate analysis, and to Rodney Beard for useful comments and assistance with the game-theoretic analysis. Usual caveats apply.