Experimental and Behavioral Economics

Experimental and Behavioral Economics Lecture/Seminar (IV) Summer term 2015

Prof. Dr. Dorothea Kübler Dr. Roel van Veldhuizen

Room: Erweiterungsbau EB 407 Time: Monday, 2-4 pm

Topics

1. Introduction: Experimental Methods

2. Bayesian updating and cognitive heuristics

3. Reference dependence and endowment effects

4. Statistical methods for experiments

5. Bounded rationality

6. Unethical behavior

7. Self-control and willpower

8. Social preferences

9. Sorting and discrimination in labor markets

10. Nudging

Contact / Office Hours

Please email us to arrange an appointment [email protected] [email protected]

Lecture Notes

In the course of the term, lecture notes will be posted on the course website: http://www.wiwi-experimente.tu-berlin.de/menue/studium_und_lehre/lehrveranstaltungen/

Grading

We will assign one paper in each of the first five weeks of the course. All students have to read this paper and send both instructors a one-page memo on it. The memo can either be a summary of the paper or it can provide comments and examples on the material covered in the paper, or a combination of both. The memo is due on Sunday evening before the next lecture. If students complete at least four out of five memos in a satisfactory fashion, they will receive 20 additional points for the final exam (where a total of 100 points can be earned). For three memos, 15 points are added and so forth.

There will be a final exam (70% of the final grade) on Monday, July 13, 2014, 2-4 pm.

Bachelor / Master students are required to read a paper from the background reading list and prepare a short presentation (5-10 minutes) in the beginning/end of the lecture of the chosen topic. This contributes 30% to the final grade.

PhD students are required to design an experiment (30% of the final grade) and describe this design in a paper no more than 10 pages. The design should be suitable to answer an original research question either from one of the topics covered or another (new) topic. A key part of the proposal (besides the design) will be a review of the current literature with respect to your proposal – explaining the way in which your research is novel relative to what has been done before.