Experimental economics is a tool to collect data using randomization in a highly controlled environment. Economic experiments are conducted in controlled laboratory environments in order to test economic theory, look for behavioral regularities, formulate new theories to explain unpredicted regularities, and to make policy recommendations by testing new policies and fine - tuning existing ones. Experiments have been performed in many economic fields like behavioral economics, development economics, organizational economics, labor economics and finance. This course offers an introduction to experimental economics.
In this class, students will have the opportunity to experience economics first-hand and learn how people actually respond to economic incentives. This class will expand on the lessons learned in other microeconomics courses by testing economic theory in the laboratory. Topics will include: How do people bargain with each other, and what determines bargaining outcomes? How and why do markets work? When do markets fail? When do people voluntarily contribute to providing public goods or maintaining a common pool resource?