Master
2024/2025
Experimental Economics
Type:
Elective course (Economics and Economic Policy)
Area of studies:
Economics
Delivered by:
Department of Theoretical Economics
Where:
Faculty of Economic Sciences
When:
1 year, 4 module
Mode of studies:
offline
Open to:
students of all HSE University campuses
Instructors:
Soubhagya Sahoo
Master’s programme:
Economics and Economic policy
Language:
English
ECTS credits:
3
Course Syllabus
Abstract
Experimental economics is a field of economics that aims to study economic behaviors by conducting controlled experiments. It involves setting up a controlled environment to observe how individuals behave under specific conditions and then using this information to test economic theories. Researchers and policymakers can benefit from the findings of experimental economics studies by gaining a deeper understanding of human decision-making, market dynamics, and policy formulation. This course prioritizes student-led paper presentations and discussions, structured into three segments. First, it focuses on methodological foundations, including experimental design (lab, field, and natural experiments), ethical considerations, randomization techniques, and data analysis. Second, it examines applications of experiments to study preferences, market dynamics, and discrimination, with case studies on policy-relevant topics such as nudges, market interventions, and behavioral insights in institutional design. Finally, it explores advanced topics in field experiments, including randomized controlled trials (RCTs) and their role in addressing socioeconomic questions. Students will develop skills in designing, critiquing, and replicating experiments while engaging with both foundational and contemporary research, preparing them to contribute to academic inquiry and evidence-based policy solutions.
Learning Objectives
- Understand the principles and methodologies of experimental economics
- Develop proficiency in designing, implementing, and analyzing controlled experiments
- Critically evaluate experimental studies
- Explain how experimental methods have contributed to economics.
- Explain the overall importance of field experiments to the discipline of economics.
Expected Learning Outcomes
- Correlation vs. causation
- Challenge of causal identification in social sciences
- Selection bias and Randomization
- Internal and external validity
- Behavioral development economics
- Induced value method
- House money effect
- Subjects of the experiment
- Risk behavior in the laboratory
- Experimenter demand effect
- Bounded rationality
- Heuristics and biases
- Controlled experiment
- Natural experiments
- laboratory experiment
- Parallelism
- Internal vs External validity
Course Contents
- Introduction
- Methodological Foundations
- Causal Inference & RCT
- Applications to Development Economics
Assessment Elements
- PresentationSelected papers will be shared during the lectures.
- EssayWrite a comprehensive essay analyzing the paper presented.
- Participation and attendance
Interim Assessment
- 2024/2025 4th module0.2 * Essay + 0.3 * Participation and attendance + 0.5 * Presentation
Bibliography
Recommended Core Bibliography
- An introduction to behavioral economics, Wilkinson, N., 2012
- Duflo, E., & Banerjee, A. (2017). Handbook of Field Experiments. Amsterdam, Netherlands: North Holland. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1145037
- Methods in experimental economics : an introduction, Weimann, J., 2019
- Mostly harmless econometrics : an empiricist's companion, Angrist, J. D., 2009
Recommended Additional Bibliography
- Causal inference : the mixtape, Cunningham, S., 2021
- Mastering 'Metrics : the path from cause to effect, Angrist, J. D., 2015
- Nudge : improving decisions about health, wealth and happiness, Thaler, R. H., 2009
- The handbook of experimental economics, , 1995
- The handbook of experimental economics. Vol.2: ., , 2015