040207 SE Designing and Implementing an Economic Experiment (MA) (2017S)

Experimental economics has recently become a popular research method for understanding all aspects of individual and group economic behavior. Economists use experiments (in the lab or field) to test the validity of economic theories and efficiency of market mechanisms. Knowing how to properly design, implement, and analyse an economic experiment has become increasingly important.
The course is intended for advanced master students with a strong interest in microeconomics, game theory, public economics, or political economy. The idea of the seminar is to develop the research skills required in the field of Experimental Economics. Students will become familiar with the following aspects of experimental research: (1) how to develop a good research question, (2) how to design and implement an experiment to address the posed research question, (3) how to analyze experimental data and draw conclusions justified by statistical evidence. By the end of the course students will have completed an experimental research project.

Organization: This research-based course will be taught in a highly interactive way. During the course, students will learn how typical research in experimental economics is conducted. Starting with posing and developing a research question, programming and implementating (using zTree or oTree) a proper experimental design, finishing with data analysis (using statistical software) and the reporting of main findings.

Students will be required to present their research question and design supported by recent developments in the literature early in the course. After receiving feedback from instructors and peers, they will work on the experimental design, program and run pilot experimental sessions. Data from the pilot sessions will be analysed to identify results. Students will then reflect on their experience to identify improvements in the design and further extensions to their research question. Based on their work during the semester, students will write, present and submit a project report.

Depending on the size of the class, students will work in groups (max. 3 students) on developing their own experiment. We determine the “Group in Charge” for each topic in the first session. It is therefore imperative to participate in the first session where we briefly summarize the topics, students form groups and pick a topic. Students who cannot (for a good reason) participate in the first session should send me an e-mail by 6 pm on the day before the first session.