Understanding people’s motivations (altruism, reciprocity, inequality aversion as well as self-interest) is essential to being able to predict economic behavior. Experiments are a tool so that people’s behavior can be observed under controlled conditions. In this course, we develop and deepen students’ understanding of the experimental method of investigation in economics. Furthermore, we survey research which incorporates behavioral and psychological evidence into economics based on empirical observations from the lab and from the field. We also consider the implications of the modified models for market outcomes and public policy. Topics include (but are not limited to) fairness, altruism, and reciprocity; preferences for redistribution; heuristics and cognitive biases; nudging; and social identity.

Attendance is compulsory. Students are required to attend 80% of the total amount of class contact hours.

Grading will rely on in-class presentations and a research paper. The first presentation will be on the research question and the experimental idea; the second presentation will be on the final experimental design. The presentations each will be marked with a weight of 15%. The weight of the research paper towards the final mark will be 70%, since it represents the sum of all efforts made during the overall course. Marking will be based on proficiency in tools and methods, as well as creativity, innovation, logic and justification of arguments.