Experimental Economics

This subject has the following teaching availabilities in 2010:

316-202 Intermediate Microeconomics.

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

This subject deals with the behaviour of real people in economically relevant situations. Students will learn about behaviour in a variety of markets - for example markets with price controls, markets for trading long lived assets and auction markets. Students will also learn about social dilemmas that arise when people try to provide public goods voluntarily, lobby to influence governments, or when sellers try to conspire to fix prices. Students will also learn how people bargain with each other and interact in institutions where they need to trust each other. Are individuals fully rational or as selfish as typically assumed by economists? What are the consequences of the findings for economic theory?

Typically, in the first lecture of each week students will participate in experiments which will introduce the topic of the week. In the second lecture the results from the experiments will be presented and compared to theoretical predictions. At the end of the course students should understand the most important issues related to designing experiments as well as have knowledge of some of the key findings of experimental economics.

• Introduce students to laboratory experiments as a method for empirical investigation
• Offer an alternative approach to analysing economic problems
• Evaluate the predictive power of different economic theories
• Facilitate a deep understanding of the topics to be covered by exposing students to the problem at hand
  

A 2-hour end of semester examination (60%), an essay of approximately 2500 words (25%), assignments equivalent to 1000 words (10%) and class participation (5%).

This subject potentially can be taken as a breadth subject component for the following courses:

• Bachelor of Arts
• Bachelor of Biomedicine
• Bachelor of Environments
• Bachelor of Music
• Bachelor of Science
• Bachelor of Engineering

You should visit learn more about breadth subjects and read the breadth requirements for your degree, and should discuss your choice with your student adviser, before deciding on your subjects.

• High level of development: oral communication; written communication; application of theory to practice; interpretation and analysis; critical thinking; synthesis of data and other information; evaluation of data and other information; use of computer software; receptiveness to alternative ideas.

• Moderate level of development: collaborative learning; problem solving; team work; statistical reasoning; accessing data and other information from a range of sources.