ES50121: Experimental economics
[Page last updated: 12 August 2021]
| Academic Year: | 2021/2 |
| Owning Department/School: | Department of Economics |
| Credits: | 6 [equivalent to 12 CATS credits] |
| Notional Study Hours: | 120 |
| Level: | Masters UG & PG (FHEQ level 7) |
| Period: |
|
| Assessment Summary: | CW 60%, EX 30%, PR 10% |
| Assessment Detail: |
|
| Supplementary Assessment: |
|
| Requisites: | |
| Aims: | * To introduce the exciting field of game theory and experimental economics: In recent years the importance of economic experiments has been increasing. Why do we run experiments? There are mainly three reasons: (i) Economists aim to test their theories, as physicians do; (ii) Experiments can be used to discover new economic hypotheses; (iii) They can also illuminate or support policymaking (e.g. David Cameron's 'nudge unit', Google's ad auction model). Experimental economics is a discipline of increasing importance (Nobel prizes). * To provide hands-on experience of experimental economics: Typically students will participate in a computerised experiment for each topic. After the experiment, a lecture will explain the related theory and discuss the interpretation of the experimental outcomes. The course should provide enjoyable, interactive and concrete learning experience. |
| Learning Outcomes: | On completing this unit, students should be able to:
* Follow the analysis of interactive decision making and construct their own mathematical arguments; * Understand the role of economic theory in analysing "real world" problems; * Write answers to the short theoretic questions; * Discuss the outcome of the experiments in comparison with the theory prediction; * Explore better alternative explanations or think critically about the theory when the theory prediction does not fully match the experimental outcome. |
| Skills: | Problem solving, abstract thinking and logical and rigorous arguments. |
| Content: | Part 1: Introduction to Experimental Economics
* Thinking strategically: p-beauty contest game Part 2: Buying, selling and different types of market * Market interaction: market experiment * Cooperation: Bertrand competition experiment * Auctions: private value auction experiment Part 3: Asymmetric information * Adverse selection: the market of lemon experiment * Information cascades: cascade experiment * Bargaining and principal agent relations: ultimatum game Part 4: Different types of game * Collective action problems: public goods game * Zero-sum games and mixed strategies * Coordination games: currency attacks, focal point experiments. |
| Programme availability: |
ES50121 is Optional on the following programmes:Department of Economics
|
Notes:
|