Applied Experimental Economics

Teachers

Included in study programs

Teaching results

Understanding
Distinguishing between causality and correlation, understanding the limits of experimental methods
Competence
Critical thinking, identification of alternative explanations of a particular economic phenomenon and the ability to eliminate (verify) them, ability to ask a research question and answer it
Skills
Designing a laboratory and field experiment to answer a research question, ability to test theoretical hypotheses, application of experimental methods within an organization or industry to find out what works and what does not, ability to write a scientific article utilizing experimental methods.
Indicative content:

• Methodology of science – advanced
• Experiments vs theory
• Replicability
• (Non)generalizability of experimental results
• How to write experimental papers
• Market institutions -- advanced
• Market design and market performance
• Asset bubbles

Indicative content

• Methodology of science – advanced
• Experiments vs theory
• Replicability
• (Non)generalizability of experimental results
• How to write experimental papers
• Market institutions -- advanced
• Market design and market performance
• Asset bubbles

Support literature

Experimental Methods – A Primer for Economists by Daniel Friedman and Shyam Sunder, Cambridge University Press 2004
V. Smith, “Markets as Economizers of Information: Experimental Examination of the Hayek Hypothesis,” Economic Inquiry, vol. 20, April 1982, pp. 165-179.

V. Smith, “An Empirical Study of Decentralized Institutions of Monopoly Restraint,” pp. 83-106 in G. Horwich and J. Quirk (eds.), Essays in Contemporary Fields of Economics. West Lafayette: Purdue University Press, 1981.

V. Smith, “Theory, Experiment, and Economics,” Journal of Economic Perspectives, vol. 3, Winter 1989, pp. 151-169.

V. Smith, “Economics in the Laboratory,” Journal of Economic Perspectives, vol. 8, Winter 1994, pp. 113-131.

J. Cox, “On Testing the Utility Hypothesis,” Economic Journal, vol. 107, July 1997, pp. 1054-1078.
J. Cox, B. Roberson, and V. Smith, “Theory and Behavior of Single Object Auctions,” pp. 1- 43 in V. Smith (ed.), Research in Experimental Economics, vol. 2. Greenwich: JAI Press, 1982.
D. Lucking-Reiley, “Using Field Experiments to test Equivalence Between Auction Formats: Magic on the Internet,” American Economic Review, vol. 89, 1999, pp. 1063-1079.
R. Forsythe, T. Palfrey, and C. Plott, “Asset Valuation in an Experimental Market,” Econometrica, vol. 50, May 1982, pp. 537-567.
Collins, S.M., James, D., Servátka, M., Woods, D., 2017. Price-setting and attainment of equilibrium: posted offers versus an administered price. Games Econ. Behavior

Requirements to complete the course

Full time
20% class exercise: specifying a research question
40% class project: The primary focus of the course is on applying experimental methods, which can only be done through a project (rather than an exam), hence the 40% weight on the project.
40% written exam
Part time
20% class exercise: specifying a research question
40% class project: The primary focus of the course is on applying experimental methods, which can only be done through a project (rather than an exam), hence the 40% weight on the project.
40% written exam

Student workload

Full time 8 x 26 = 208
consultations 30 h, experiment 30 h, class exercise 20 h, studying for the exam 70 h, class project 58 h
Part time 8 x 26 = 208
consultations 30 h, experiment 30 h, class exercise 20 h, studying for the exam 70 h, class project 58 h

Language whose command is required to complete the course

slovak

Date of approval: 11.03.2024

Date of the latest change: 24.01.2022