30261 - EXPERIMENTAL ECONOMICS AND PSYCHOLOGY
CLEAM - CLEF - CLEACC - BESS-CLES - WBB - BIEF - BIEM - BIG
Course taught in English
Go to class group/s: 31
The goal is to introduce students to the exciting world of experimental and behavioral economics, including relevant methods (e.g. game theory, experiments, non-parametric statistics). Economists often use advanced mathematical methods, but rely on rigid 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.
- Elementary Rational Choice Theory and its implications for theory testing. Review of the classical models of risk and time preferences.
- A little bit of of psychology. Relativity, sensitivity to framing, and loss aversion. Heuristics & habits as they relate to ignorance, limited experience and bounded rationality.
- Applications of insights from pscychology to economic choice under certainty and uncertainty.
- Social preferences and their implications for individual and strategic behavior: fairness, blame.
- Strategic interaction.
- Setup of a lab experiment and analysis of experimental data.
- We will cover additional topics, according to class interests, among which: the economics of social networks, online and field experiments, behavioral finance, dual reasoning.
Students are assessed based on the performance on a project as well as on a final exam.
For all students, the final grade is based on
- One project (40%).
- And one final exam (60%).
There is a textbook that we use in the first part of the course:
• E. ANGNER, A Course in Behavioral Economics, Palgrave Macmillan, 2012.
and a recent textbook that we will partially follow in the final part:
• P. G. MOFFATT, Experimetrics: Econometrics for experimental economics. Palgrave Macmillan, 2015.
- Relevant articles will be assigned, handouts will be added.