Economics with Experiments

Learning Outcomes

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• derive the optimal and equilbrium behaviour in simple games
• apply formal logic to solve simple games
• abstract the essential features of complex systems and provide a useable framework for basic analysis in form of simple games.

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

• central concepts of microeconomics in theory and practice
• deviations from expected equilibrium behaviour in actual behaviour in experiments

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• communicate logical arguments and quantitative reasoning through discussion in class and in form of an essay;
• collaborate with others and identify problems and strategies for the achievement of common goals both practically in experiments and group work and analytically in assignments.
• identify, select and access a range of sources to develop and present arguments and evidence in the form of critical essays

This module will use the modern tool of economic experiments in order to explore important topics in economics, such as the functioning of markets, economic inequality and redistribution, human coordination and cooperation, behaviour in risky environments, evidence-based behavioural economic policy, and more.

For each topic, students will first participate in an economic experiment. The experience of participating in economic experiments in small, laboratory sessions will provide first-hand experience of economic problems as modelled and understood by economists. We will then discuss the results of the experiment, the economic theories that try to explain the observed behaviour, and some economic applications to which the experiment tries to bring insights.

Teaching and learning methods

Lectures, masterclasses and experiments, both in the classroom and in the Social Sciences Experimental Laboratory of the University of Southampton. The incorporation of laboratory experiments is truly innovative in that it provides "hands-on" training to the student in a way that complements the instruction of theoretical notions. In addition, all experiments will be interactive and pleasant.

Resources & Reading list

General Resources

Detailed lecture notes freely available via Blackboard.

Textbooks

D. Kahnemann (2012). Thinking, fast and slow. Penguin.

D.K. Levine (2012). Is Behavioural Economics Doomed? The ordinary versus the Extraordinary. Freely available at: https://www.openbookpublishers.com/product/77/.

Assessment strategy

Continuous participation in experiments, take-home problem sets, a presentation and essay (2250 words) prepared in groups. This is supported by formative assessment in form of problem sets. There is no final exam. This is the same for internal repeats. Referral and external repeat assessment are through 100% individual essay.

Summative

This is how we’ll formally assess what you have learned in this module.

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.

Repeat Information

Repeat type: Internal & External