ECON 2155: Experimental Economics

Experimental economics is a set of methods for testing hypotheses about behavior. Traditional economic analysis using naturally occurring data is often confounded by the complexities of the real world. Economic experiments, on the other hand, give researchers the control required for isolating behaviors of interest. As such, economic experiments can be useful tools for testing existing theories and establishing empirical regularities assisting in the development of new theories. In this course, we cover the basic principles of experimental design. We also study a number of classic experiments, on topics ranging from the efficiency of markets to decision-making under uncertainty and behavioral game theory. Students will participate in mock experiments and will begin putting their new skills into practice by designing their own experiments, which may serve as the basis for IQPs/MQPs. If time permits, we will discuss some of the basic methods for analyzing experimental data, which presents challenges somewhat different from naturally occurring data due to small sample sizes. This course will be offered in 2021-22, and in alternating years thereafter.