ECON 420 - Experimental Economics

Administrative details

    Date and location: Monday and Wednesday 10.00am - 11.50am, KAP166

    Office hours: Wednesdays 4.00pm - 5.00pm; KAP120

    Teaching Assistant: Jingyi Tian, email: jingyiti@usc.edu

    Office hours of Teaching Assistant: Thursdays 2.30pm - 4.30pm and by appointment, Econ Lounge (outside of KAP 319)

Software

We will run experiments through the platform MobLab (see www.moblab.com). The first week of class, students will receive an invitation to join the class. All students enrolled in ECON 420 must accept the invitation and pay the $25 license fee for the semester. If you have questions, email me.

Books

  • Main book

    Markets, Games & Strategic Behavior, C. A. Holt, Pearson Addison Wesley (2007)

  • Other book of interest

    The Handbook of Experimental Economics, J. H. Kagel and A. E. Roth, Princeton University Press (1997)

Syllabus

The syllabus (PDF version) can be found here

Important dates

IMPORTANT: change of the midterm date

Midterm date: MONDAY, OCTOBER 14 from 10am to 11.30am (in class)

Final date: Monday, December 16 from 8.00am to 10.00am

Course outline

  • Introduction

  • Consistency of preferences - tests of rationality

  • Theories of risk

  • Objective and subjective uncertainty

  • Other regarding preferences

  • Introduction to Game Theory

  • Coordination games and prisoner's dilemma

  • Repeated games

  • Limited strategic thinking: the beauty contest

  • Trust and reciprocity

  • Forward and backward induction

  • Games of asymmetric information (1): the takeover game

  • Games of asymmetric information (2): auctions

  • Market experiments

  • Recent topics in experimental economics

Readings

Teaching