Introductory description

The module will cover selected topics in experimental economics. Experimental economics was pioneered by Vernon Smith, the Nobel Prize in Economics in 2002This module is different from behavioural economics. Behavioural economics aims to improve economic analysis using psychological insights.

Experimental economics is rather a research method applied to the various topics in economic analysis as well as evaluating effects of policy change. The experimental economics setup ranges from using laboratory to field or natural settings which allows to test the relationship between two variables in an controlled environment, and remove the effects of external factors.

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

The course will cover selected topics in individual decision making. This is an indicative module outline only to indicate the sort of topics that may be covered.

The syllabus will cover some of the following topics:
History of Experimental Economics
Types of experiments
Experimental Design and Internal Validity
Real effort tasks
Conducting an Experiment,
Software In Experimental Economics,
Emotions
Markets, auctions
Conflict, coordination, cooperation
Repeated games, PD, PG,
Level-k models
Experimental Data Analysis and Reporting Experimental Results
Practical Work
Policy and Behaviour (topics in education, discrimination)

Learning outcomes

By the end of the module, students should be able to:

• To demonstrate understanding of and apply basic principles of experimental design, conduct and analysis. The teaching and learning methods that enable students to achieve this learning outcome are Lectures, seminars, independent study and reading.
• Evaluate the main controversies in mainstream economics. The teaching and learning methods that enable students to achieve this learning outcome are Lectures, seminars, independent study.
• Develop plausible models of behaviour that cannot be explained by the standard economic rational agent-based theories. The teaching and learning methods that enable students to achieve this learning outcome are Lectures, seminars, independent study and reading.
• Communicate an understanding of experimental economics using appropriate methodologies. The teaching and learning methods that enable students to achieve this learning outcome are Lectures, seminars, independent study and reading

Indicative reading list

(1) Jacquemet, N., & L'Haridon, O. (2018). Experimental Economics: Method and Applications. Cambridge: Cambridge University Press. doi:10.1017/9781107446786

(2) Moffatt, P. G. (2015). Experimetrics : Econometrics for experimental economics. Palgrave Macmillan.

Interdisciplinary

Experimental Economics is an interdisciplinary module. The module design integrates knowledge from microeconomics, game theory, behavioural economics and development economics. The module give the opportunity to develop connections between ideas, experiences and practice from different fields.

Subject specific skills

Students will have the opportunity to develop skills in:
Analytical thinking and communication
Analytical reasoning
Critical thinking
Strategic thinking
Problem-solving

Transferable skills

Students will have the opportunity to develop:
Research skills
Design an Experiment
Numeracy and quantitative skills
Written communication skills
Oral communication skills
Mathematical, statistical and data-based research skills