BEHAVIORAL AND EXPERIMENTAL ECONOMICS
- Overview
- Assessment methods
- Learning objectives
- Contents
- Full programme
- Delivery method
- Teaching methods
- Contacts/Info
Basic knowledge of microeconomic theory and the key concepts of game theory.
The exam consists of a written test and is divided into two parts, corresponding respectively to the topics covered by Moscati and Gamba. Structure of the exam: 2 open questions and exercises on the first part, 2 open questions on the second part; each question: 7.5 points; total points: 30; overall time: 75 minutes. The first general exam will take place in January 2026. The exact dates of the first and the following general exams will be posted shortly.
Behavioral and experimental economics are two flourishing research programs in recent economic analysis. Generally speaking, behavioral economics studies the effects on economic behavior of psychological factors that were neglected by traditional economic analysis, and advances a series of new models that capture those psychological factors. Experimental economics tests the validity of economic theories, traditional or behavioral they may be, by using experimental methods. Economic experiments may be conducted in artificially designed environments (laboratory experiments) or in natural settings (field experiments). In the Part 1 of the course (20 hours), Moscati introduces the main concepts, findings, and models of behavioral economics. In Part 2 (20 hours), Gamba introduces the methodology of experimental economics, discusses some important laboratory and field experiments, and teaches how to design a simple economic experiment. At the end of this course, the student will be able to: 1. Master the main concepts, findings, and models of behavioral economics. 2. Understand the basic principles and methodologies of experimental economics, discuss an experimental research study, and design a simple economic experiment.
Part 1 (Moscati): Decision making: (i) in riskless situations; (ii) in situations of risk; (iii) over time; (iv) in strategic situations. For each type of decision-making, the lecturer first discusses the so-called neoclassical (aka mainstream) theory of decision-making, and then moves to the corresponding behavioral theories. Part 2 (Gamba): Experimental methodology: (i) overview of the experimental methods; (ii) the relationship between economic theory and experiments; (iii) advantages and limitations of the experimental method; (iv) review of some important laboratory and field experiments; (v) how to design a simple economic experiment.
PART 1 (MOSCATI) Class 1 Decision-making under certainty, neoclassical – behavioral: Rational Choice Theory – Anomalies for Rational Choice Theory Class 2 Decision-making under risk, neoclassical: Expected Utility Theory Class 3 Decision-making under risk, behavioral Prospect Theory, Rank Dependent Utility Theory Class 4 Intertemporal decision-making, neoclassical – behavioral: Discounted Utility Model – Beta-Delta Model Class 5 Strategic decision-making, neoclassical – behavioral: Game Theory – Behavioral Game Theory PART 2 (GAMBA) Class 6 Introduction to experimental economics: History, Why, What & How – Pros & Cons; Classroom experiment 1 Class 7 Taxonomy of experiments and fundamentals of experimental design: Types of experiments; Internal vs. external validity; Main ingredients & design features Class 8 Fundamentals of experimental design (continued): Main ingredients & design features; A case study; Classroom experiment 2 Class 9 Practical Issues and Influential Studies: Incentives and experimental procedures; Discussion of influential experiments Class 10 Designing your own experiment: Step-by-step guide to design a simple experiment; Group work: students draft & present a basic experiment using a structured template provided
Lectures, tutorials, and laboratory classes.
Texts Part 1 (Moscati): • Instructor’s slides • Suggested but not compulsory: -Moscati, I., The History and Methodology of Expected Utility, Cambridge University Press, 2023; -Dhami, S., Principles of Behavioral Economics, Cambridge University Press, 2025. Part 2 (Gamba): • Instructor’s slides • Selected research papers available on E-learning