MW24.2 Quantitative Economics I (SS2022)

Experimental Economics

Please be aware that this is intended as an onsite course.

Course Structure

The course is comprised of two parts. As far as the lectures, the first part provides a basic overview of the field and discusses the major methodological issues related to conducting economic experiments in the laboratory. The second part discusses some prominent findings from a selection of game theory inspired experiments as well as from the literature on probability judgment.

The first block of exercise sessions provides a recapitulation of some core game theoretic concepts that serve as the de facto standard benchmarks for experimental findings. The second block is reserved for in-class experiments and more detailed discussion of select papers.

Time Schedule

Lecture: FRI, 1200 - 1400, SR207.
Exercise: WED, 1600 - 1800, SR207.
Exam: TBD, onsite.
Exam Retake: TBD, onsite, only takes place in case of fails.

Prerequisites

There are no specific prerequisites but "MW26.1 Approaches to Economic Science" is recommended.

If you have no idea what economic experiments are about, you may want to take a look at the paper below as an example; it's relatively simple, short and hopefully, entertaining:

Reading Materials

The course does not have a master text book but rather requires the students to read the original papers for a given topic. Still, select chapters from the following list can be useful for background reading.

Methodology:

Experimental Findings:

  • Holt, Charles A. Markets, Games, and Strategic Behavior, Pearson-Adison Wesley, 2007.

In addition, lecture notes will be provided where applicable. Please consider the suggested reading list for the details.

For the game theory block of the exercise sessions there will be no written materials provided. The block is loosely based on Robert Gibbons' Game Theory for Applied Economists (1992) but virtually any game theory text book should be just fine.

The above links links should work from within the university (or via the university VPN).

Classroom Experiments

As part of the second block of the exercise sessions, adapted versions of some prominent experiments will be conducted online. While it is possible to participate using a smartphone, it is recommended that you use something with a larger screen for that.

Further details will be provided in due time.

Grading Policy

The course grade is determined solely by performance at the final exam where understanding of the core concepts as well as their application will be tested.

Consider a sample exam as well as the general instructions to have an idea about what to expect.