Advanced Microeconomics II: Experimental Economics
Textbook for the course is: Holt & Davis, Experimental Economics -- however, we will be studying a lot of additional materials -- these are linked on the relevant lectures. Alternate Wordpress Website: AZ Students. Book & reference materials available from: IIIE Library
Other courses: Macroeconomics at PIDE: Sep 2018 to Jan 2019
Objectives: Last time I taught Experimental Economics, it was a stand-alone course in experimental economics. Website linked above gives lectures and reference materials. This time, I am teaching the course as Advanced Microeconomics II. This course has an entirely different objective. Now I would like to use Experimental Economics to teach the traditional materials taught in Microeconomics. The Experimental Method makes the material accessible and understandable to students, since they get direct and immediate experience with the concepts covered due to being subjects in an experiment which puts them into the situation which economic theory describes. In addition, it is my hope to supplement the experiments with ABM: Agent Based Modeling -- this will give students experience in running computer based simulations of experiments. This is actually the process of constructing Models. However the ABD models are radically different from traditional Micro Models. Traditional Micro models are drastically over-simplified because they need to be worked out with pen and paper in the minds of the economist. The computer based ABM models feed in data on 100s or 1000s or even millions of agents, and let the computer solve for outcomes -- which may or may not be equilibrium. This is a radically new and different way of creating economic models, which will be the basis and foundation for the microeconomics of the 21st Century. The old style micro has proven to be a complete failure. See my paper on The Empirical Evidence Against Neoclassical Utility Theory: A Survey of the Literature. Learning this new methodology will allow students of this course to lead the way towards the construction of the new micro we need for this new century and millenium.
Lecture 1: The Oral Double Auction (ODA): Supply & Demand Theory experimentally verified.
Lecture 2: Discussion of THEORY of S&D and link with ODA.
Lecture 3: Variants of ODA where S&D equilibrium fails. Information & Learning requirements
Lecture 4: ODA: Explaining Convergence
Lecture 5: Illustrations of Alternative Micro-Structure for ODA; Implications.
Lecture 6: Decisions under Uncertainty: Expected Utility theory
Lecture 7: Methodology: Prospect Theory Versus Psychological Protocols
Lecture 8: Camerer: Prospect Theory in the Wild
Lecture 9: Barberis-Thaler Survey of Behavioral Finance: Part I - The Efficient Markets Hypothesis
Lecture 10: (cont) Part II: Irrational Behavior.
AM2=Advanced Micro II -- AM2L11 = Lecture 11: This is just a continuation of sequence of lectures above.
AM2L20 Voluntary Contribution Mechanism (VCM)
AM2L24 Subjective Probability
=========BELOW is OUTLINE of OLD COURSE--- IGNORE -- it will be deleted later
Lecture 11: Monetary and Non Monetary Rewards== Kube et. al. & Saima Mahmood-Asad Zaman
Lecture 12:Social Norms== Chapter 4 of Ariely: Predictably Irrational
Lecture 13: Reciprocity: Fehr et.al.
Lecture 14: Punishment & Rewards: Using Reciprocity to Establish Social Norms
Lecture 15: Bargaining: Section 4. of Camerer
Lecture 16:Fairness: Chapters 10 and 11 of Quasi Rational Economics by Thaler
Lecture 17: Social Norms==Do the Right Thing: But Only if Others Do So by Cristina Bicchieri and Ertex Xiao
Lecture 18: Social Norms: Defining them and assessing their effects==BICCHIERI1 and CHAVEZ2
Lecture19: Indigenous Communities, Cooperation and Communication by Ghate et.al.,