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This course introduces the subject matter, methods, and results of experimental economics. The course will stress the interaction of theory and experiment, seeking to relate questions in the theory of markets, games, and decisions to issues in experimental design and the analysis and interpretation of results. The course covers experiments on decision making under risk, bargaining, bounded rationality, collective action, social norms, cultural influences, and market behavior.
Competitive Markets. Social preferences. Extensive-Form Games. Normal-Form Games.Unstructured bargaining. Individual Decisions under Uncertainty. Fairness and social utility. Coordination. Preplay Communication. Learning. Auctions. Public goods. Equilibrium refinements. Experiments in Strategic Interaction. Bargaining. Bounded rationality. Voting. Markets, aggregation and strategic environment. Loss aversion.
Upon succesful completion of this course, a student will be able to
1. Acquire comprehensive and detailed knowledge of experimental methods in economics
2. Explain the major issues involved in design and interpretation of economic experiments
3. Demonstrate knowledge of how experimental economics has contributed to the economics literature in specific areas.
4. Evaluate behavioural insights and theoretical predictions from experiments run in the lab and the field
5. Explain the differences between behavioral economics and the traditional methods of analysis
6. Write and present a literature review relevant to a specific experiment