This paper describes the redesign and implementation of a graduate course in electronic commerce using a pedagogical strategy, problem centered learning, and a "virtual economy," (VE) a simulation of a competitive marketplace for information products and services. The pedagogical, service, research, and technological components of this course are presented and the student experience is briefly described. At the time of this writing, the VE has been operating for three weeks so the discussion of the challenges faced by the students is necessarily brief and preliminary.