Experimental Economics

Quantitative Economics MW24.2


This course introduces students to experimental methods in economics, focusing on how controlled experiments can be used to test economic theories and inform policy decisions. The course begins with an introduction to the role of experiments in economics, discussing their historical development and comparison with other empirical methods. It then covers the principles of designing and conducting experiments, compares lab and field experiments, and discusses principles of reliable and ethical research. Next, the course delves into key experimental topics, including individual decision-making under risk and uncertainty, bargaining and coordination games, public goods and cooperation dilemmas, and market experiments. If time permits, we will cover how biophysical measurements can complement experimental data. The last two lectures will be reserved for going through a mock exam and a Q & A session.


Schedule

Please note: the lectures start at 12:00 sharp (not 12:15). The exercise sessions start at 14:00 sharp.

In meeting 3, there will be 2 lectures. During exercise sessions in meetings 4-12, students will present papers from the Articles for presentations list below.

  Meeting Lecture Exercise
    12:00 - 13:30 14:00 - 15:30
1 April 10 Introduction to experiments
2 April 17 Design basics I Class experiment; basic game theoretic concepts
3 April 24 Design basics II
4 May 8 Lab vs. field experiments Presentations: Pelin: 14
5 May 15 Good research methods & ethics Presentations: Halima: 1
6 May 22 Individual choice & risk experiments Presentations: Evans: 4, Tewodros: 5
7 June 5 Bargaining & coordination experiments Presentation: Dennis: 10
8 June 12 Public good & cooperation experiments Presentation: Kamran: 15
9 June 19 Market experiments Presentations: Valentin: 16
10 June 26 Biophysical measurements Presentations
11 July 3 Going through a mock exam TBD
12 July 10 Q & A TBD

Course requirements and grading

Participants should have a solid background and interest in empirical work and statistics, with (at least) basic knowledge of the linear regression model (OLS) and basic notions of game theory. Grading will be based on:

To pass, you have to participate actively and constructively in at least 70% sessions. If you miss a session due to health reasons, send me a certificate from your GP within three days.


Literature

The readings are compulsory, should be done before the lecture.

Lectures 2 and 3

Lecture 4


Articles for presentations

  1. Alempaki, D., Burdea, V., & Read, D. (2023). Deceptive Communication: Direct Lies vs. Ignorance, Partial-Truth and Silence. Discussion Paper, No. 444.
  2. Andre, P. (2025). Shallow meritocracy. Review of Economic Studies, 92(2), 772-807.
  3. Barron, K., Ditlmann, R., Gehrig, S., & Schweighofer-Kodritsch, S. (2025). Explicit and implicit belief-based gender discrimination: A hiring experiment. Management Science, 71(2), 1600-1622.
  4. Bartling, B., Weber, R. A., & Yao, L. (2015). Do markets erode social responsibility? The Quarterly Journal of Economics, 130(1), 219-266.
  5. Bohren, N., Hakimov, R., & Lalive, R. (2024). Creative and Strategic Capabilities of Generative AI: Evidence from Large-Scale Experiments (No. 17302). IZA Discussion Papers.
  6. Bolton, G., Greiner, B., & Ockenfels, A. (2013) Engineering trust: Reciprocity in the production of reputation information. Management Science 59(2): 265-285.
  7. Burbano, V.C. (2021) The demotivating effects of communicating a social-political stance: Field experimental evidence from an online labor market platform. Management Science 67(2): 1004-1025.
  8. Bursztyn, L., Handel, B., Jiménez-Durán, R., & Roth, C. (2024) When product markets become collective traps: the case of social media. Conditionally accepted at the American Economic Review.
  9. Cassar, A., & Zhang, Y. J. (2022). The competitive woman: Evolutionary insights and cross-cultural evidence into finding the Femina Economica. Journal of Economic Behavior & Organization, 197, 447-471.
  10. Clist, P., D’Exelle, B., & Verschoor, A. (2021). An endowment effect for risk levels: Evidence from a Ugandan lab. Journal of Economic Behavior & Organization, 182, 297-310.
  11. Corgnet, B., DeSantis, M., & Porter, D. (2024). Let's chat… when communication promotes efficiency in experimental asset markets. Management Science, 70(10), 6550-6568.
  12. Dana, J., Weber, R. A., & Kuang, J. X. (2007). Exploiting moral wiggle room: experiments demonstrating an illusory preference for fairness. Economic Theory, 33(1), 67-80.
  13. Engelmann, D., Friedrichsen, J., & Kübler, D. (2024) Fairness in markets and market experiments: insights from a field-plus-lab study and a failed replication. Scandinavian Journal of Economics 126(4), 698-732.
  14. Falk, A., Neuber, N., & Szech, N. (2020) Diffusion of being pivotal and immoral outcomes. The Review of Economic Studies, 87(5), 2205-2229.
  15. Haeckl, S., & Rege, M. (2025). Effects of supportive leadership behaviors on employee satisfaction, engagement, and performance: An experimental field investigation. Management Science, 71(1), 347-365.
  16. Hoeft, L., & Mill, W. (2024). Abuse of power: An experimental investigation of the effects of power and transparency on centralized punishment. Journal of Economic Behavior & Organization, 220, 305-324.
  17. Laske, K., Römer, N., & Schröder, M. (2024). Piece-Rate Incentives and Idea Generation–An Experimental Analysis. CESifo Working Paper No. 11594.
  18. Lee, Y.-S. and Weber, R.A. (2024) Revealed privacy preferences: Are privacy choices rational? Management Science 71(3), 2657-2677.
  19. Opitz, S., Sliwka, D., Vogelsang, T., & Zimmermann T. (2025) The algorithmic assignment of incentive schemes. Management Science 71(2): 1546-1563.