Understanding people’s motivations (altruism, reciprocity, inequality aversion as well as self-interest) is essential to being able to predict economic behavior. Experiments are a tool for observing behavior under controlled conditions. In this course, we develop and deepen students’ understanding of the experimental method of investigation in economics. Furthermore, we survey research which incorporates behavioral and psychological evidence into economics based on empirical observations from the lab and from the field. We also consider the implications of the modified models for market outcomes and public policy. Topics include (but are not limited to) fairness, altruism, and reciprocity; punishment and social norms; gender differences in the labor market; motivated beliefs and information avoidance; and group decision making.

Students will learn how experiments help us understand the real economic world. They will be familiar with aspects of design, implementation, and evaluation of experiments, enabling them to elaborate, implement, and analyze an experiment in the lab or in the field. Students will learn how psychological, cognitive, and social factors affect the economic decisions of individuals and institutions, the consequences of such factors for market outcomes, efficiency and allocations, and their policy relevance.

Attendance is compulsory. Students are required to attend 80% of the total amount of class contact hours.

This is a parallel seminar to the Specialization Course in Behavioral and Experimental Economics. While the Specialization Course deals more with the subject matter of behavioral economics, the Research & Policy Seminar focuses on the key methodological and conceptual issues of experimental economics. Students will work on individual experimental pilot projects. Students can decide to base their project on an existing research paper and a variation of the original design, to develop their own ideas, or to work on a topic proposed to them.

Grading will be based on two in-class presentations and a research paper in groups. The first presentation will be on the research question and the experimental idea; the second presentation will be on the final experimental design. Each of the presentations will be marked with a weight of 15%. The weight of the research paper towards the final mark will be 70%, since it represents the sum of all efforts made during the overall course. Marking will be based on proficiency in tools and methods, as well as creativity, innovation, logic and justification of arguments.

Knowledge of microeconomics and statistical (econometric) methods
Students are expected to take the “Field Course: Behavioral and Experimental Economics” (or to have completed this lecture in the previous year).

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