Experiments in Economics and Business

Course goals

Learning objectives
At the end of the course, the student is capable of:

• Understanding the standard toolbox of experimental methods used in economic experiments.
• Formulating research questions and designing experiments to test economic theory.
• Developing and implementing controlled experimental treatments, taking into account practical, ethical and methodological considerations.
• Analysing and interpreting experimental data to draw meaningful conclusions.
• Critically evaluating experimental studies and their validity, robustness, and relevance for theory and policy.

Content

Students who are not enrolled in the research master Multidisciplinary Economics should contact the course coordinator for enrolment in this course.

Experimental Economics studies economic behaviour using controlled experiments in the laboratory and in the field. Experimental methods have become central to modern economics because they allow researchers to identify causal effects and test economic theories in carefully designed environments. This course provides a comprehensive introduction to the experimental method as a tool for generating and interpreting data on human decisions, motivations, and outcomes.

The course addresses when and why economists use experiments, how experimental approaches compare to other empirical methods, and what conclusions can and cannot be drawn from experimental evidence. It is intended both for students who aim to design and conduct their own experiments and for those who wish to critically assess experimental research.

A central component of the course focuses on experimental design. Students learn how to translate economic questions and theoretical models into testable experimental environments, how to structure treatments and controls, and how to isolate the mechanisms of interest from alternative explanations. We develop a systematic language for describing experimental tools and discuss strategies for distinguishing causal mechanisms from background influences.

In addition to laboratory experiments, the course introduces key principles of field experiments and the extension of experimental methods beyond the lab. We discuss practical aspects of implementation, including piloting, incentives, recruitment, administrative and ethical considerations, and common design pitfalls. Attention is also given to pre-registration, pre-analysis plans, robustness, replication, and the responsible interpretation of experimental findings.

By the end of the course, students will be able to design a coherent experimental study and critically evaluate experimental evidence in economics.

Intended Learning Outcomes
The graduate:

• has broad knowledge of core and state-of-the-art theories and empirical methods in economics
• can think in a logical way
• has knowledge of multidisciplinary aspects of their own research specialization
• can write an academic paper in English aiming for the level of a publishable article in a peer-reviewed journal
• can present and communicate in English (communication to experts and non-experts; ability to give policy advice)
• can properly design economics experiments
• can critically appraise literature
• can identify innovative and well-delineated research questions
• can develop as an independent academic, formulating research questions, and answering them
• can make their own research relevant for society
• can critically reflect on their own work, and critically reflect on work of others in an appropriate way
• can defend one’s own research results, while being open to criticism
• can keep track of the external validity and societal relevance of their own research

Assessment method

1. Written assignments (70% of the final grade)
2. Presentation (30% of the final grade). This component subdivides into two distinct assessments. One part assesses the quality of your presentation (80%). The other part assesses the quality of your participation while in the audience during the other presentations (20%).

Effort requirements
Participation to 80% of all meetings.

In case online access is required for this course and you are not in the position to buy the access code, you are advised to contact the course coordinator for an alternative solution. Please note that access codes are not reusable meaning that codes from second hand books do not work, as well as access codes from books with a different ISBN. Separate or spare codes are usually not available.