Course Information
Course title
 Experimental Economics I: Behavioral Game Theory 
Semester
 112-2 
Designated for
 COLLEGE OF SOCIAL SCIENCES  GRADUATE INSTITUTE OF ECONOMICS  
Instructor
 JOSEPH TAO-YI WANG 
Curriculum Number
 ECON5112 
Curriculum Identity Number
 323EU8110 
Class
  
Credits
 3.0 
Full/Half
Yr.
 Half 
Required/
Elective
 Elective 
Time
 Tuesday 2,3,4(9:10~12:10) 
Remarks
 Restriction: juniors and beyond OR Restriction: MA students and beyond OR Restriction: Ph. D students
The upper limit of the number of students: 32.
The upper limit of the number of non-majors: 4. 
  
Course introduction video
 
Table of Core Capabilities and Curriculum Planning
 Table of Core Capabilities and Curriculum Planning
Course Syllabus
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Course Description

This is an upper division and graduate level course on experimental economics, focusing on behavioral game theory. The purpose is to introduce experimental economics to students so they can start their own research in this field. You are expected to write replication reports of research papers and present them. 

Course Objective
 Specific goals of this course include:
1. Introduction to Experimental Economics: After this class, students are expected to be able to name several experiments performed in each fields of economics, and describe how the results affirm (or differ from) economic theory and/or field data.
2. Experimental Design: After this class, students are expected to understand how to design and run an experiment. Students can also write a research proposal that:
a. Proposes an economic experiment (with sample subject instructions), satisfying:
i. Real Incentives (so choices have real consequences),
ii. A Good Control Group (to compare with Treatment group),
iii. Random Assignment (to the Treatment and Control groups),
iv. No deception (to establish reputation so real incentives are believed).
b. Argues why should we care about this experiment and why the experiment is designed this way (compared to other possible designs), and,
c. Relates your experiment to existing literature (if any) and describes expected results and/or methods to analyze the data (or simulation results).
3. Evaluate Current Research: After this class, students are expected to develop the ability to read recent journal articles in experimental economics, and evaluate the quality of the papers. During class, students are expected to read assigned journal articles and book chapters and present one article in class. 
Course Requirement
 Intermediate microeconomics or game theory is the pre-requisite of this course.  
Student Workload (Expected weekly study hours before and/or after class)
 6 
Office Hours
 Tue. 12:10~13:00 Note: Or by email appointment. 
Designated reading
 1. Camerer (2003), Behavioral Game Theory, Princeton University Press. (BGT)
2. Moffatt (2019), Experimetrics Lecture Notes for NTU mini-course. (EMT) 
References
 1. Capra, Croson, Rigdon and Rosenblat, ed. (2020), Handbook of Experimental Game Theory, Edward Elgar Publishing.
2. Kagel and Roth, ed. (1995/2016), Handbook of Experimental Economics, Vol. 1 and Handbook of Experimental Economics, Vol. 2, Princeton University Press (HEE1/2).
3. Holt (2019), Markets, Games and Strategic Behavior: An Introduction to Experimental Economics, Princeton University Press. (Holt; Undergraduate text)
4. Moffatt (2016), Experimetrics: Econometrics for Experimental Economics, Palgrave. 
Grading
  
No.
Item
%
Explanations for the conditions
1. 
 Homework and Quiz 
40% 
 Final quiz on weekly problem sets in BGT (5/28 in class). 
2. 
 Estimation and Replication 
35% 
 Form groups to perform experimetric estimations (submit via NTU COOL) and replicate assigned paper (due 6/4). 
3. 
 Presentation 
25% 
 20-minute oral presentation of one research article (15%) and feedback to others (10%). In lieu of oral presentation (15%) and replication report (20%), one may present and submit an experimental proposal (35%; <4 pages, due 6/4). 
 
Adjustment methods for students
  
Teaching methods
Assignment submission methods
 Written report replaces oral report
Exam methods
 Written (oral) reports replace exams
Others
Progress
Week
Date
Topic
Week 1
 2/20  Experimental Economics and Behavioral Game Theory (BGT, Ch.1; Holt; Wang)
Experimetrics and Power Analysis (EMT, Ch.1-2) 
Week 2
 2/27  Risk and Time Preferences (Holt, Ch.3)
Basic Principles of Experimental Design (BGT, A1.2)
Estimation of Risk Aversion Parameter: Binary Lottery (EMT, Ch.3) 
Week 3
 3/5  Social Preferences (BGT, Ch.2; HEE2, Ch.4; UG, DG, Trust; Lin-20)
Estimating Social Preferences/Ultimatum Game (EMT, Ch. 4) 
Week 4
 3/12  Mixed-Strategy Equilibrium (BGT, Ch.3); Estimating QRE (Experimetrics, Ch.16) 
Week 5
 3/19  Bargaining (BGT, Ch.4) 
Week 6
 3/26  Dominant Solvable Games (BGT, Ch.5) 
Week 7
 4/2  Multi-Agent Contracting (Guest Lecture by Eyal Winter)
Mini-Course in Multi-Agent Contracting (by Eyal Winter) [4/2-11] 
Week 8
 4/9  Experimental Evidence of Multi-Agent Contracting (Guest Lecture: Eyal Winter) 
Week 9
 4/16  Level-k Thinking (Crawford-13); Finite Mixture Models (EMT, Ch. 5) 
Week 10
 4/23  Learning (BGT, Ch.6; HEE2, Ch.10) 
Week 11
 4/30  Coordination (BGT, Ch.7) 
Week 12
 5/7  Signaling/Reputation (BGT, Ch.8) 
Week 13
 5/14  Research Paper Presentation 
Week 14
 5/21  Replication Report Presentation 
Week 15
 5/28  Final Quiz 
Week 16
 6/4  Revised Replication Presentation and Replication Report Due