Experimental Economics
Course Description
The main goal of this course is to provide a comprehensive overview of the experimental methodology. This course is open to master and graduate students and it targets students that are interested in enhancing their methodological tool kit to either conduct their own experimental studies or to be able to evaluate experimental literature in their field. Participation to the course requires an undergraduate background in economic theory, statistics, and econometrics. Knowledge of R is of advantage in working on the practical projects, the statistical concepts will be illustrated in R.
for further development of computerized projects we recommend python/otree (not compulsory for successful completion of the course).
Course Objectives
They can be found in the module description.
Contact
Readings
A textbook covering important methodological aspects of experimental economics. The book is available as an ebook from the library. This book is not mandatory, but it is a good reference for the course.
Moreover we draw from material of: EAGEP on the theory and practice of field experiments
Software skills
This material will not be covered in class but helps following the code examples and the replication exercise. We recommend to familiarize yourself with the following:
Ressources for practical experimental economics
Grading Policy
15% Coursework 1
15% Coursework 2
70% Take-home assignment
Referral 100% Take-home assignment
Attendance Policy
General attendance is strongly encouraged.
Class Schedule
Class readings are subject to change, contingent on mitigating circumstances and the progress we make as a class. Students are encouraged to attend lectures and check page for updates.
Required Course Work
Home assignments 1 and 2
There will be two home assignments that will test your understanding of the content of the lectures as well as the analytical and critical abilities you will develop during the module. The assignments will consist of problem-solving exercises based on the methodological aspects of the module as well as short-answer questions about research papers. Each assignment weights 15% of your final grade.
Final project:
The objective of the final project is for you to replicate the results of an existing experiment and suggest a slight modification of the experiment to answer a new question. You will be asked to write a report that explain what you replicate and your experimental addition in detail (between 1500 and 2000 words). A tutorial session will give you guidance and an opportunity for Q&A. The final project will count for 70% of your final grade.
You can collaborate in groups of two to three students.
Please upload the results of your coursework on Blackboard (TurnitIn) on time, you shall upload as a group where possible.
Course Content
Topic 1: Introduction
Introduction to experimental economics, why experimenting? Why experimenting in the social sciences? What an economic experiment can be used for?
Topic 2: Potential outcome framework
Potential outcome framework and the design of economic experiments: randomization, internal validity
Topic 3: Statistical inference
Inference in economic experiments: parametric and non-parametric tests, multiple testing, robustness checks, size and power of statistical tests.
Topic 4: External validity
What can we infer from experiments about the real world? How to generalize experimental results? Field experiments as a method to enhance external validity.
Topic 5: Prototypical experiments
- individual decision-making (risk, time, social preferences)
- market and auctions (double auctions, first-price, second-price)
- coordination and dilemmas (prisoner’s dilemma, public goods, coordination games)
Topic 6: Synthesizing the evidence
Replications and meta-analysis. How robust are experimental results? How to synthesize the evidence from multiple experiments? How to conduct a meta-analysis? How to interpret the results of a meta-analysis?