30261 - EXPERIMENTAL ECONOMICS AND PSYCHOLOGY
CLEAM - CLEF - CLEACC - BESS-CLES - BIEMF
Department of Decision Sciences
Course taught in English
MARTIN DUFWENBERG
Course Objectives
The goal is to introduce students to the exciting world of experimental & behavioral economics, including relevant methods (e.g. game theory, experiments, non-parametric statistics). Economists often use advanced mathematical methods, but rely on relatively simplistic assumptions about human nature. Research in neighboring social sciences, by contrast, typically uses less sophisticated analytical methods while entertaining a richer description of man. Behavioral economics combines the strength of both approaches, incorporating psychological insights into economic analysis with continued use of formal analytical tools. Lab experiments provide a means to gauge the empirical relevance of the resulting models.
Course Content Summary
- Game theory.
- Quantal response.
- Level-k.
- Social preferences.
- Psychological games.
- Experimental games.
- Risk.
- Time.
- Evolution.
- Policy.
Detailed Description of Assessment Methods
Students are assessed based on the performance on a team project as well as on a final exam. The team evaluation is collective but also factors in an individual evaluation-by-peers to help assess how well a student has contributed to team work.
The final grade is based on the team project (25%) and on the final exam (75%)
Textbooks
Part of the course objective is to train students to read original research articles. There will be no textbook. Relevant articles will be assigned, handouts will be added. Key theoretical notions will be covered in class and reflected in problem sets. Regular attendance and diligent work on problem sets will likely be critical for efficient learning and good performance on the exam.
Prerequisites
Microeconomics.