Participants will study the theory behind and the methodological foundation of experimental economics. Students will also learn the practice of experimental economics. At the end of the course students will have a methodologically sound basis for doing experimental economics research which will allow them to use that method in an informed way in their own research.

This course will cover the theoretical and methodological background as well as practical issues of experimental work in economics and finance. The course will discuss methodological issues of the domain of economics experiments, internal validity, external validity, the role of experiments in theory testing and theory suggesting. It will also critically discuss norms and customs in experimental economics research, as the use of task related incentives and the no-deception paradigm. On the practical side the course will deal with the question of what makes an experimental design good or bad, what are the different degrees of independent observations, what are efficient dialogues with the data. Part of the course will be devoted to practical experimental economics where students will develop, conduct, and analyse their own small experimental research project.

There is no one textbook that will cover the course. The literature will consist of a wide variety of readings including chapters from textbooks aimed at advanced graduates and contemporary research articles.

Research master’s students only; Microeconomics at a research master’s level (e.g. EBC4061 Microeconomics I and EBC4204 Microeconomics II).