Experimental and Behavioral Economics

Catalog description

experimental methods and experimental design and uses this framework to inform a careful examination of the strengths and limitations of economic theory in explaining actual human behavior in economic situations. When economic theories do not seem to fit the data the course draws on findings from other social sciences such as psychology and sociology to explore reasons for divergence of theory and practice. The content begins with a brief history of experiments in economics. Then it outlines key features of experimental design and an introduction to the basics of game theory, which are commonly utilized in experiments. After establishing the basics, the course investigates decision making under uncertainty and compares how various theoretical explanations predict actual human decisions. We then discuss bargaining experiments and bargaining theory. The course concludes with a description of common behavioral influences and biases in judgment and decision making. There is a common theme throughout the course showing how theory and experiments can be used in conjunction to improve of understanding of economic behavior.