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Experimental Economics I: Behavioral Game Theory

Offered in 113-2Updated
  • Notes
    The course is conducted in English。
  • Limits on Course Adding / Dropping
    • Restriction: juniors and beyond or Restriction: MA students and beyond or Restriction: Ph. D students

  • NTU Enrollment Status

    Enrolled
    0/30
    Other Depts
    0/4
    Remaining
    0
    Registered
    0
  • Course Description
    This is an upper division and graduate level course on experimental economics, focusing on behavioral game theory. The purpose is to introduce experimental economics to students so they can start their own research in this field. You are also expected to perform replication and present them.
  • Course Objective
    Specific goals of this course include: 1. Introduction to Experimental Economics: After this class, students are expected to name classic experiments in each field of behavioral game theory and describe how their results affirm or differ from economic theory and field data. 2. Evaluate Current Research: After this class, students are expected to develop the ability to read journal articles in experimental economics and evaluate their quality. Each week students are expected to read assigned journal articles, complete problem sets in preparation for the final quiz. They will also form groups to present one paper in class and replicate its results in a final report. 3. Experimental Design: After this class, students are expected to understand how experiments are run and designed. Students may also write a research proposal to: a. Propose an economic experiment (and write sample instructions) which has: i. Real Incentives (so choices have real consequences), ii. A Good Control Group (to compare with Treatment group), iii. Random Assignment (to the Treatment and Control groups), iv. No deception (to establish reputation so real incentives are believed). b. Argue why should we care about this experiment and why the experiment is designed this way (compared to other possible designs), and, c. Relate your experiment to existing literature (if any) and describe expected results and/or methods to analyze the data with appropriate power analysis.
  • Course Requirement
    Intermediate microeconomics or game theory is the pre-requisite of this course, though graduate microeconomic theory and/or undergraduate analysis is a plus.
  • Expected weekly study hours after class
    15
  • Office Hour
    Fri17:20 - 18:00

    Friday 17:20-18:00pm after class or by email appointment

  • Designated Reading
    1. Camerer (2003), Behavioral Game Theory, Princeton University Press. (BGT) 2. Moffatt (2019), Experimetrics Lecture Notes for NTU mini-course. (EMT) 3. Weizsäcker (2023), Misunderstandings, OpenBook Publishers. (MU)
  • References
    1. Holt (2019), Markets, Games and Strategic Behavior: An Introduction to Experimental Economics, 2nd ed., Princeton University Press. (Undergraduate; Holt) 2. Moffatt (2016), Experimetrics: Econometrics for Experimental Economics, Palgrave. 3. Riley (2012), Essential Microeconomics, Cambridge University Press. (EM). 4. Mas-Colell, Whinston and Green (1995), Microeconomic Theory, Oxford UP. (MWG) 5. Kagel and Roth, ed. (1995, 2016), Handbook of Experimental Economics, Vol. 1 and Vol. 2, Princeton University Press (EE1, EE2). 6. Capra, Croson, Rigdon and Rosenblat, ed. (2020), Handbook of Experimental Game Theory, Edward Elgar Publishing. (EGT)
  • Grading
    15%

    Group Replication

    Present replication results for an assigned experimentric method and submit replication report (15%, report due 6/6). To exceed the instructor’s expectations and receive A+, you are required to discuss in my office hours, present and submit your experimental proposal (<4 pages) instead of the replication report (also due 6/6).

    35%

    Group Presentation

    20-minute oral presentation of one book chapter (15%) and one research article (15%) and providing weekly feedback to others (5%).

    50%

    Midterm and Final Quiz

    Weekly problem sets in BGT are assigned, which questions (randomly) selected to appear in the midterm (3/21) and final quiz (5/23).

  • Adjustment methods for students
    Adjustment MethodDescription
    Teaching methods

    Assisted by video

  • Course Schedule
    2/21Week 1Experimental Economics and Behavioral Game Theory (BGT, Ch.1; Holt; Wang)
    2/28Week 2National Holiday: Watch videos on Experimetrics and Power Analysis [EMT 1a]
    3/7Week 3Risk and Time Preferences (Holt, Ch.3); Basic Principles of Experimental Design (BGT, A1.2)
    3/14Week 4Social Preferences (BGT, Ch.2; HEE2, Ch.4; UG, DG, Trust; Lin-20)
    3/21Week 5Midterm Quiz (on Homework for BGT, Ch.1-2 and Holt, Ch.3)
    3/28Week 6Mixed-Strategy Equilibrium (BGT, Ch.3) [EMT 1b/2], [MU-1/2]
    4/3Week 7Spring Break (no class)
    4/11Week 8Bargaining (BGT, Ch.4) [EMT 3abcd], [MU-3]
    4/18Week 9Dominant Solvable Games (BGT, Ch.5) [EMT 4ab], [MU-4]
    4/25Week 10Level-k Thinking (Crawford-13) [EMT 16ab] [MU-5]
    5/2Week 11Learning (BGT, Ch.6; HEE2, Ch.10); Estimating Learning [EMT 5abc, 18ab]
    5/9Week 12Coordination (BGT, Ch.7) [MU-6], [MU-7]
    5/16Week 13Signaling and Reputation (BGT, Ch.8) [MU-8], [MU-9/10]
    5/23Week 14Final Quiz
    5/30Week 15Dragon Boat Festival Weekend (Work on Replication Report/Proposal)
    6/6Week 16Replication Report/Final Proposal Due