Course Outline

This is outline of old course given at IIIE, IIUI. For relevant books, see link to BOOKS; in particular, see Fiona Carmichael for a good CONVENTIONAL textbook. This course teaches unconventional game theory, explaining why it does not work in real life. Shortllink for this page: bit.do/ee2012

This is structured radically differently from new course being offered at PIDE: For the new course, see Exp Econ 2018 (This is Advanced Micro II taught at PIDE in Spring 2018).

Objectives:

Game theory predicts human behavior in strategic games. Actual behavior observed is different, because humans have a wider range of motivations than those assumed in economic theory. Experimental Economics originated with interactions between psychologists and economists, and studies the contrasts and matches between predictions of economic theory and actual human behavior. Ideally, students should study microeconomics using Holt & Davis Experimental Economics as a textbook for the perfect background.

An outline of the course is as follows. Link to all Video-Lectures

A closely related lecture to lecture 1 below is: Advanced Micro I - Lec 6: Game Theory, Decision Trees - this may be useful as supplementary material.

Lecture 1: Extensive Form Games, solution by backwards induction

Lecture 2: Strategies

Lecture 3: Normal Form Games, Dominance, Nash Equilibrium, Dominance Solvable Games

Lecture 4: The Ultimatum Game: Chapter 2 of Camerer

Lecture 5: Prisoners Dilemma, Trust Games, and Musharka Financing.

Lecture 6: Labor Market and Gift Exchange -- Syed Kanwar Abbas & Zaman

Lecture 7: Market Exchange VERSUS Social Exchange

Lecture 8: Monetary and Non-Monetary Rewards == Kube et. al. & Saima Mahmood-Asad Zaman

Lecture 9: Social Norms == Chapter 4 of Ariely: Predictably Irrational

Lecture 10: Reciprocity: Fehr et. al.

Lecture 11: Punishment & Rewards: Using Reciprocity to Establish Social Norms

Lecture 12: Bargaining: Section 4. of Camerer

Lecture 13: Fairness: Chapters 10 and 11 of Quasi Rational Economics by Thaler

Lecture 14: Social Norms==Do the Right Thing: But Only if Others Do So by Cristina Bicchieri and Ertex Xiao

Lecture15: Social Norms: Defining them and assessing their effects==BICCHIERI1 and CHAVEZ2

Lecture 16: Indigenous Communities, Cooperation and Communication by Ghate et.al.,