Experimental Economics

Academic unit or major

Undergraduate major in Industrial Engineering and Economics

Instructor(s)

Takehiko Yamato / Tomoya Kazumura

Class Format

Lecture/Exercise (Zoom)

Media-enhanced courses

-

Day of week/Period
(Classrooms)

7-8 Mon (W935) / 7-8 Thu (W935)

Class

-

Course Code

IEE.B206

Number of credits

110

Course offered

2020

Offered quarter

4Q

Syllabus updated

Jul 10, 2025

Language

Japanese

Syllabus

Course overview and goals

Outline:
In this course, we lecture on experimental methods of testing economic theoretical predictions. The course is divided into three main topics: "Market," "Game," and "Mechanism Design." For each topic, we begin with an experiment followed by an explanation of the economic theoretical predictions in the experiment. Finally, each group of students is asked to analyze the experimental data and give a presentation of the analysis.

Aim:
In economics, in order to analyze several economic phenomena, a human being is assumed to be a "homo economicus" that is rational and selfish. However, human beings in reality may not be so rational or selfish as is typically assumed. For example, some people may envy the wealthy, while some may feel sympathy towards those not as fortunate. On the other hand, a "homo economicus" is free of such feelings and cares only about his/her own interest.
Such difference between a "homo economicus" and a human being in reality may cause a big gap between theoretical predictions and economic phenomena in reality. Conducting economic experiments is crucial in grasping the extent of this gap. The purpose of this class is for students to develop the viewpoint of comparing the economic theory and reality through economic experiments.

Course description and aims

At the end of this course, students will be able to:
(1) Conduct an economic experiment by themselves.
(2) Analyze and interpret the experimental data.
(3) Compare the experimental results with the economic theoretical predictions.

Keywords

Economic Experiment, Market, Equilibrium, Behavioral Game Theory, Mechanism Design

Competencies

• Specialist skills
• Intercultural skills
• Communication skills
• Critical thinking skills
• Practical and/or problem-solving skills

Class flow

The course is divided into three main topics: "Market," "Game," and "Mechanism Design." For each topic, we begin with an experiment followed by an explanation of the economic theoretical predictions in the experiment. Finally, each group of students is asked to analyze the experimental data and give a presentation of the analysis. Students must attend the first class to determine the group assignments.

Course schedule/Objectives

Study advice (preparation and review)

To enhance effective learning, students are encouraged to spend approximately 100 minutes preparing for class and another 100 minutes reviewing class content afterwards (including assignments) for each class.
They should do so by referring to textbooks and other course material.

Textbook(s)

No textbook is set. All materials used in this class can be accessed using the OCW-i.

Reference books, course materials, etc.

All materials used in this class can be accessed using the OCW-i.

Evaluation methods and criteria

Students' knowledge of experimental economics will be assessed by homework, reports, and exams.

Related courses

• IEE.B201 ： Microeconomics I
• IEE.B202 ： Microeconomics II
• IEE.B205 ： Noncooperative Game Theory

Prerequisites

Students should be interested in experimental economics.