Econ 264                                                                         Winter 2007
Experimental Economics

Professor James Andreoni
andreoni@ucsd.edu  -  215 Econonomics Building -
 http://econ.ucsd.edu/~jandreon/264/

Course Description: This course will be a survey of some of the recent literature on Experimental Economics. The background for the course is graduate microeconomic theory and game theory.

Text: There is no text for the course, but students are encouraged to purchase these:

 John Kagel and Alvin Roth, Handbook of Experimental Economics, Princeton, 1995.

Camerer, Colin, Behavioral Game Theory, New York, Russell Sage & Princeton University Press, 2003.

Format: This course will be taught in a seminar format, with plenty of interaction and discussion among the students.  Students will be expected to make at least one presentation during the term, leading the discussion on a paper or topic. Students are expected to read the assigned papers before each meeting.

Course Project: There will be no exams for the course, but students will be required to submit a course project. Students must complete two projects.

PROJECT 1: Write a paper that surveys the literature on one area of interest of any topic concerning experimental economics, and to suggest tests of open questions.  Topics need not be restricted to those covered in the course, but should be approved by Professor Andreoni.  Maximum length should be 10 pages.

PROJECT 2: Design an experiment.  The design should include a statement of the research question, a prediction based in economic theory, the task the subjects will complete, a sketch of the protocol (instructions for subjects, directions for experimenters), number of subjects per condition, and a description of how the data will be analyzed to test the prediction. Students are encouraged to work in pairs to design their studies.  At the end of the semester, each team of designers must present their experimental ideas to the class.

Course Outline: Following is a course outline. This is a living document that will likely change and evolve as the semester proceeds-expect updates often. There are far too many papers listed here to cover in one quarter, so as the term progresses we will respond to both time and student interest to direct our attention and the depth of our discussions on the topics below.                      
 

 

PROPOSED OUTLINE FOR THE COURSE:

 

  1. Background and Introduction
  2. Altruism, Fairness, Trust
    1. Ultimatum Games
    2. Dictator Games
    3. Trust Games
    4. Anonymity and Social Distance
    5. Models of Inequality Aversion
    6. A Rational Approach to Giving and Altruism
    7. Altruism and the Number of Recipients
  1. Public Goods

a.       Linear

b.      Provision Point

c.       Mechanism Design

d.      Fund-raising

e.       Field Studies

  1. Building Cooperation

a.       Reputation building

b.      Sorting

c.       Punishments and rewards

  1. Uncertainty and Expected Utility
  2. Coordination
  3. Communication

a.       And altruism

b.      And coordination

c.       And deception

  1. Over-Confidence
  2. Belief Polarization
  3. Information and Signaling
  4. Time Consistency/Hyperbolic Discounting
  5. Endowment Effect
  6. Sex and Beauty
  7. Auctions
  8. Errors and Learning

a.       Adaptive and Evolutionary Learning

b.      Belief Based Learning

c.       Reinforcement Learning

d.      Combinations of Belief and Reinforcement

e.       Quantile Response Equilibrium

16. Neuro-economics

 

 


Experimental Economics
Econ 264
**CURRENT VERSION OF READING LIST: February 23, 2007 **

 

0.      Background and Introduction

 

Roth, Alvin E. "The Early History of Experimental Economics." Journal of the History of Economic Thought,1993, 15(2), pp. 184-209. html

 

Samuelson, Larry. “Economic Theory and Experimental Economics.” Journal of Economic Literature, 2005, 43(1), pp. 65-107. pdf

 

Rubinstein, Ariel, “Dilemmas of an Economic Theorist.” Econometrica, 74 (4), July 2006, 865-883. pdf

 

Rabin, Matthew. “Psychology and Economics.” Journal of  Economic Literature, 1998, 36(1), pp. 11-46. pdf

 

Hertwig, Ralph and Andreas Ortmann. “Experimental Practices in Economics: A Methodological Challenge for Psychologists?” Behavioral and Brain Sciences, 2001, 24(3), pp. 383-402. pdf

 

Kahneman, Daniel. “Maps of Bounded Rationality: Psychology for Behavioral Economics.” American Economic Review, 2003, 93(5), pp. 1449-1475.  pdf

 

Binmore, Ken. “Economic Man – or Straw Man? Commentary on Heinrich, et al.” Behavioral and Brain Sciences, 2005, 28, pp. 815-818. html

 

Roth, Alvin E. "Lets Keep the Con out of Experimental Econ.: A Methodological Note." Empirical Economics, 1994, 19(2), pp. 279-289. html

 

1.      Altruism, Fairness, Trust

  1. Ultimatum Games and Dictator Games

 

Guth, Werner, R. Schmittberger and B. Schwartz. “An Experimental Analysis of

Ultimatum Bargaining.” Journal of Games and Economic Behavior,

1982, 3(4), pp. 367-388. pdf

 

Forsythe, Robert, Joel Horowitz, N.S. Savin and Martin Sefton. “Fairness in Simple Bargaining Experiments.” Games and Economic Behavior, 1994, 6(3), pp. 347-369. pdf

 

Ochs, Jack and Alvin E. Roth. “An Experimental Study of Sequential Bargaining.”

American Economic Review, 1989, 79(3), pp. 355-384. pdf

 

 

Roth, Alvin E., V. Prasnikar, M. Okunofujiwara and S. Zamir. “Bargaining and Market

Behavior in Jerusalem, Ljubljana, Pittsburgh, and Tokyo: An Experimental Study.” American Economic Review, 1991, 81(5), pp. 1068-1095. pdf

 

Slonim, Robert and Alvin E. Roth. “Learning in High Stakes Ultimatum Games: An Experiment in the Slovak Republic.” Econometrica, 1988, 66(3), pp. 569-596. pdf

 

 

  1. Trust Games

 

Berg, Joyce, John Dickhaut and Kevin McCabe. “Trust, Reciprocity, and Social History.” Games and Economic Behavior, 1995, 10(1), pp. 122-142. pdf

 

Van Huyck, John B.; Raymond C. Battalio and Mary F. Walters. “Commitment versus Discretion in the Peasant-Dictator Game.” Games and Economic Behavior, 1995, 10(1), pp. 143-170. pdf

 

Fehr, Ernst, et al. “Does Fairness Prevent Market Clearing? An Experimental Investigation.”Quarterly Journal of Economics, 1993, 108(2), pp. 437-459. pdf

 

Glaeser, Edward L., et al. “Measuring Trust.” Quarterly Journal of Economics, 2000, 115(3), pp. 811–846. pdf

 

Cox, James C. “How to Identify Trust and Reciprocity.” Games and Economic

Behavior, 2004, 46(2), pp. 260–281. pdf

 

Fehr, Ernst, Simon Gächter and Georg Kirchsteiger. “Reciprocity as a Contract

Enforcement Device: Experimental Evidence.” Econometrica, 1997, 65(4), pp. 833–860. pdf

 

Bohnet, Iris, Bruno S. Frey and Steffen Huck. “More Order with Less Law: On Contract Enforcement, Trust, and Crowding.” American Political Science Review, 2001, 95(1), pp. 131–144. pdf

 

Andreoni, James. "Trust, Reciprocity, and Contract Enforcement: Experiments on Satisfaction Guaranteed."2005, Working Paper. pdf

 

Sobel, Joel. “Interdependent Preferences and Reciprocity. ” Journal of Economic Literature, 2005, 43(2), pp. 392-436. pdf

           

Engelmann, Dirk and Andreas Ortmann. “The Robustness of Laboratory Gift Exchange: A Reconsideration.” 2002, Working Paper, CERGE-EI, Prague, Czech Republic. pdf

 

 

  1. Other Sequential Games

 

Prasnikar, V. and Alvin E. Roth. “Considerations of Fairness and Strategy: Experimental Data From Sequential Games.” Quarterly Journal of Economics, 1992, 107(3), pp. 865-888. pdf

 

Andreoni, James, Paul Brown and Lise Vesterlund."What Makes an Allocation Fair? Some Experimental Evidence." Games and Economic Behavior, 2002, 40(1), pp. 1-24. pdf 

 

  1. Anonymity and Social Distance

 

Hoffman, E., K. McCabe, K. Shachat, and V. Smith. “Preferences, Property Rights and Anonymity in Bargaining Games.” Games and Economic Behavior, 1994, 7(3), pp. 346-380. pdf

Hoffman, E., K. McCabe, and V. Smith. “Social Distance and Other-Regarding Behavior in Dictator Games.” American Economic Review, 1996, , pp. 653-660. pdf

 

Bohnet, Iris and Bruno S. Frey. “Social Distance and Other-Regarding Behavior in Dictator Games: Comment.” American Economic Review, 1999, 89(1), pp. 335-339. pdf

Bolton, Gary E. and Rami Zwick. “Anonymity versus Punishment in Ultimatum Bargaining.”Games and Economic Behavior, 1995, 10(1), pp. 95-121. pdf

Bohnet, Iris and Frey, B. “The Sound of Silence in Prisoner’s Dilemma and Dictator Games.” Journal of Economic Behavior and Organization, 1999, 38(1), pp. 43– 57. pdf

 

 

  1. Models of Inequality Aversion

 

Fehr, Ernst and Klaus Schmidt.“A Theory of Fairness, Competition, and Cooperation.” Quarterly Journal of Economics, 1999, 114(3), pp. 817-868. pdf

 

Bolton, Gary E. and Axel Ockenfels. “ERC¾A Theory of Equity, Reciprocity and Competition.” American Economic Review, 2000, 90(1), pp. 166-193. pdf

Rabin, Matthew “Incorporating Fairness into Game Theory and Economics.” American Economic Review, 1993, 83(5), pp. 1281-1302. pdf

Charness, Gary and Matthew Rabin. “Understanding Social Preferences with Simple Tests.” Quarterly Journal of Economics, 2002, 117(3), pp. 817-869. pdf

Levine, D. “Modelling Altruism and Spitefulness in Game Experiments.” Review of Economic Dynamics, 1998, 1(3), pp. 593–622. pdf

 

Dufwenberg, M. and G. Kirchsteiger. “A Theory of Sequential Reciprocity.” Games and Economic Behavior, 2004, 47(2), pp. 268-98. pdf

 

Li, Jing. "The Power of Convention: A Theory of Social Preferences."Journal of Economic Behavior and Organization, 2005, forthcoming. pdf

 

Joel Sobel, “Putting Altruism in Context,” Brain and Behavioral Science, 2002, 25(2), pp. 275-276. pdf

 

 

  1. A Rational Approach to Giving and Altruism

 

Andreoni, James. “Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence.” Journal of Political Economy, 1989, 97(6), pp. 1447-58. pdf

 

Andreoni, James. “Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving.” Economic Journal, 1990, 100(401), pp. 464-477. pdf

 

Andreoni, James and  J.H. Miller. “Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism.” Econometrica, 2002, 70(2), pp. 737-753. pdf

 

Andreoni, James, Marco Castillo and Ragan Petrie. “What do Bargainers’ Preferences Look Like? Experiments with a Convex Ultimatum Game.” American Economic Review, 2003, 93(3), pp. 672-685. pdf

 

Andreoni, James, Marco Castillo and Ragan Petrie. “Revealing Preferences for Fairness in Ultimatum Bargaining.” 2005, Working Paper. pdf

 

 

  1. Giving and the Number of Recipients

 

Andreoni, James. “Giving Gifts to Groups: How Congestible is Altruism?” 2006, Working Paper.

 

 

2.      Public Goods

Ledyard, John. “Public Goods: A Survey of Experimental Research.” Chapter 2 in KR.

 

  1. Linear Public Goods Games

 

Marwell, Gerald and Ruth Ames. “Economists Free Ride, Does Anyone Else? Experiments on the Provision of Public Goods, IV.” Journal of Public Economics, 1981, 15(3), pp. 295-310. pdf

Isaac, R. Mark and James Walker. “Group Size Effects in Public Goods Provision: The Voluntary Contributions Mechanism.” Quarterly Journal of Economics, 1988, 103(1), pp. 179-199. pdf

Isaac, R. Mark, James Walker and Arlingtion Williams. “Group Size and the Voluntary Provision of Public Goods: Experimental Evidence Utilizing Large Groups.” Journal of Public Economics, 1994, 54(1), pp. 1-36. pdf

Andreoni, James. “Why Free Ride?: Strategies and Learning in Public Goods Experiments.” Journal of Public Economics, 1988, 37(3), pp. 291-304. pdf

Andreoni, James. “Cooperation in Public Goods Experiments: Kindness or Confusion?” American Economic Review, 1995, 85(4), pp. 891-904. pdf

Andreoni, James. “Warm-Glows versus Cold Prickle: The Effects of Positive and Negative Framing in Public Goods Experiments. Quarterly Journal of Economics, 1995, 110(1), pp. 1-21. pdf

Palfrey, Thomas and Jeffrey Prisbrey. “Anomalous Behavior in Public Goods Experiments: How Much and Why?” American Economic Review, 1997, 87(5), pp. 829-846. pdf

Palfrey, Thomas and Jeffrey Prisbrey. “Altruism, Reputation, and Noise in Linear Public Goods Experiments.” Journal of Public Economics, 1996, 61(3), pp. 409-427. pdf

Andreoni, James. “An Experimental Test of the Public Goods Crowding-Out Hypothesis.” American Economic Review, 1993, 83(5), pp. 1317-1327. pdf

Palfrey, Thomas and Howard Rosenthal. “Testing for Effects of Cheap Talk in a Public Goods Game with Private Information.” Games and Economic Behavior, 1991, 3(2), pp. 183-220.

Anderson, Simon P., Jacob K. Goeree and Charles A. Holt. “A Theoretical Analysis of Altruism and Decision Error in Public Goods Games.” Journal of Public Economics, 1998, 70(2), pp. 297-323. pdf

Goeree, Jacob K., Charles A. Holt and S. Laury. “Private Costs and Public Benefits: Unraveling the Effects of Altruism and Noisy Behavior.” Journal of Public Economics, 2002, 83(2), pp. 257-278. pdf

 

 

  1. Provision Point

 

Davis, Douglas and Charles Holt. Experimental Economics. Princetion: Princeton University Press, pp. 338-343.

Dawes, Robin, John Orbell, R.T. Simmons and A.J.C. van de Kragt. “Organizing Groups for Collective Action.” American Political Science Review, 1986, 80(4), pp.1171-85. pdf

Bagnoli, Mark and Michael McKee. “Voluntary Contributions Games: Efficient Private Provision of Public Goods.” Economic Inquiry, 1991, 29(2), pp. 351-366. pdf

Bagnoli, Mark, Shaul Ben-David and Michael McKee. “Voluntary Provision of Public Goods: The Multiple Unit Case.” Journal of Public Economics, 1994, 47(1), pp. 85-106. pdf

Rondeau, Daniel, William D. Schulze and Gregory L. Poe. “Voluntary Revelation of the Demand for Public Goods Using a Provision Point Mechanism.” Journal of Public Economics, 1999, 72(3), pp. 455-470. pdf

Rondeau, Daniel, Gregory L. Poe and William D. Schulze. “VCM or PPM? A comparison of the performance of two voluntary public goods mechanisms.” Journal of Public Economics, 2005, 89(8), pp. 1581-1592. pdf

 

  1. Mechanism Design

Sefton, Martin and Abdullah Yavas. “Abreu-Matsushima Mechanisms: Experimental Evidence.” Games and Economic Behavior, 1996, 16(2), pp. 280-302. pdf

Chen, Yan and Charles Plott. “The Groves-Ledyard Mechanism: An Experimental Study of Institutional Design.” Journal of Public Economics, 1996, 59(3), pp. 335-364. pdf

Chen, Yan and Fang-Fang Tang. “Learning and Incentive-Compatible Mechanisms for Public Goods Provision: An Experimental Study.” Journal of Political Economy, 1998, 106(3), pp. 633-662. pdf

Andreoni, J. and Hal Varian ``Pre-Play Contracting in the Prisoners' Dilemma.'' with H.R.Varian, Proceedings of the National Academy of Sciences, v.96, September 1999, 10933-10938. pdf

 

  1. Fund-raising and Organic Mechanisms

 

 

Morgan, John. “Financing Public Goods by Means of Lotteries.” Review of Economic Studies, 2000, 67(4), pp. 761-784. pdf

 

Morgan, John and Martin Sefton. “Funding Public Goods with Lotteries: Experimental Evidence.” Review of Economic Studies, 2000, 67(4), pp. 785-810. pdf

 

Andreoni, James and Ragan Petrie. “Public Goods Experiments Without Confidentiality:  A Glimpse Into Fund-Raising.”   Journal of Public Economics, 2004, 88(7-8), pp. 1605-1623. pdf

 

Vesterlund, Lise, Jan Potters and Martin Sefton. “After You--Endogenous Sequencing in Voluntary Contribution Games.” Journal of Public Economics, 2005, 89(8), pp. 1399-1419. pdf

 

John, Jack Ochs, and Lise Vesterlund, Lise,  “Giving Little by Little: Dynamic Voluntary Contribution Games.” 2005, Working Paper. pdf

 

Duffy, John and Tatiana Kornienko. “Does Competition Affect Giving? An Experimental Study.” 2005, Working Paper. pdf

 

Cinyabuguma, Matthias, Talbot Page and Louis Putterman. “Cooperation Under the Threat of Expulsion in a Public Goods Experiment.” Journal of Public Economics, 2005, 89(8), pp. 1421-1435. pdf

 

Gailmard, Sean and Thomas R. Palfrey. “An Experimental Comparison of Collective Choice Procedures for Excludable Public Goods.” Journal of Public Economics, 2005, 89(8), pp. 1361-1398. pdf

 

Eckel, Catherine C., Philip J. Grossman and Rachel M. Johnston. “An Experimental Test of the Crowding Out Hypothesis.Journal of Public Economics, 2005, 89(8), pp. 1543-1560. pdf

 

            Goeree, Jacob, S. Onderstal, E. Maasland and J. Turner. “How (Not) to Raise Money.” Journal of Political Economy, 2005, 113(4), pp. 897-918. pdf

 

 

  1. Social Learning

 

Chaudhuri A, Graziano S, Maitra P. “Social learning and norms in a public goods experiment with inter-generational advice.”  Review of Economic Studies, 73 (2): 357-380, APR 2006. pdf

 

  1. Field Studies

 

List, John A. and David Lucking-Reiley. “The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign.” Journal of Political Economy, 2002, 110(1), pp. 215-233. pdf

 

Landry, Craig, Andreas Lange,  John A. List, Michael K. Price and Nicholas G. Rupp. "Toward an Understanding of the Economics of Charity: Evidence from a Field Experiment," Quarterly Journal of Economics, May 1, 2006, Vol. 121, No. 2, Pages 747-782.  pdf

Karlan, Dean and John List. “Does Price Matter in Charitable Giving?  Evidence from a Large-Scale Natural Field Experiment” 2006, Working Paper. pdf

 

 

3.      Building Cooperation

  1. Reputation building

 

Selten, R. and R. Stoecker. “End Behavior in Sequences of Finite Prisoner’s

Dilemma Supergames: A Learning Theory Approach.” Journal of Economic Behavior and Organization, 1986, 7(1), pp. 47-70. pdf

 

Andreoni, James and  J.H.Miller.”Rational Cooperation in the Finitely Repeated Prisoner's Dilemma: Experimental Evidence.” Economic Journal, 1993, 103(418), pp. 570-585. pdf

 

Camerer, C., and K. Weigelt. “Experimental Tests of a Sequential Equilibrium

Reputation Model.” Econometrica, 1988, 56(1), pp. 1-36. pdf

 

Cooper, R., D. DeJong and R. Forsythe “Cooperation Without Reputation: Experimental Evidence from Prisoner’s Dilemma Games.” Games and Economic

Behavior, 1996, 12(2), pp. 187-218. pdf

 

Duffy, John and Jack Ochs. “Cooperative Behavior and the Frequency of Social Interaction.” 2005, Working Paper. pdf

 

Dal Bó, P. “Cooperation under the Shadow of the Future: Experimental Evidence from Infinitely Repeated Games.” American Economics Review, 2005, 95(5), pp. 1591-1604. pdf

 

Ellison, G.  “Cooperation in the Prisoner's Dilemma with Anonymous Random

Matching.” Review of Economic Studies, 1994, 61(3), pp. 567-588. pdf

 

 

  1. Signalling and Sorting among Cooperators

 

Andreoni, James and  Larry Samuelson. “Building Rational Cooperation.”  Journal of Economic Theory, 127, 2006, pp. 117-154. pdf

 

  1. Punishments and rewards

 

Fehr, E. and S. Gachter. “Cooperation and Punishment in Public Goods Experiments.” American Economic Review, 2000, 90(4), pp. 980-994. pdf

 

Experimental Econ paper

 

Andreoni, James, William H. Harbaugh and Lise Vesterlund. “The Carrot or the Stick: Rewards, Punishments and Cooperation.” American Economic Review, 2003, 93(3), pp. 893-902. pdf

 

Masclet, David, Charles Noussair, Steven Tucker, and Marie-Claire Villeval. “Monetary and Non-Monetary Punishment in the Voluntary Contributions Mechanism.” American Economic Review, 2003, 93(1), pp. 366-380. pdf

 

4.      Uncertainty and Expected Utility

           

Kahneman and Tversky, “Prospect Theory:  An Analysis of Decision Under Risk.''  Econometrica, March 1979, vol 47, p263—291.

 

Tversky and Wakker, “Risk Attitudes and Decision Weights.'' Econometrica, November 1995, vol 63, p1255--1280.

 

Rabin, Matthew, “Risk Aversion and Expected Utility Theory:  A Calibration Theorem,''  Econometrica, September 2000, vol 68, 1281-1292.

 

Rabin and Thaler, ``Anomalies: Risk Aversion,''  J. Econ Perspectives, Winter 2001.

 

Charles A. Holt; Susan K. Laury, “Risk Aversion and Incentive EffectsAmerican Economic Review, Vol. 92, No. 5. (Dec., 2002), pp. 1644-1655. pdf

 

List, John A. “Neoclassical Theory Versus Prospect Theory: Evidence from the Marketplace.” Econometrica, 2004, 72(2), pp. 615-625. pdf

 

5.      Coordination

 

Ochs, Jack. “Coordination.” In KR.

 

Van Huyck, John B.; Battalio, Raymond C. and Beil, Richard O. “Tacit Coordination Games, Strategic Uncertainty, and Coordination Failure.” American Economic Review, 1990, 80(1), pp. 234–48. pdf

 

Van Huyck, J.B., J.M. Wildenthal and R.C. Battalio. “Tacit Cooperation, Strategic

Uncertainty, and Coordination Failure: Evidence From Repeated Dominance Solvable Games.” Games and Economic Behavior, 2002, 38(1), pp. 156-175. pdf

Schotter, Andy and Barry Sopher. “Social Learning and Convention Creation in Inter-Generational Games: An Experimental Study.” Journal of Political Economy, 2003, 111(3), pp. 498-529. pdf

Holt, Charles and J. Goeree. “An Experimental Study of Costly Coordination.”  Games and Economic Behavior, 2005, 51(2), pp. 349-364. pdf

 

Roberto A. Weber,  “Managing Growth to Achieve Efficient Coordination in Large Groups.”  American Economic Review, 2006, 96 (1), March, 114-126. pdf

 

Andreas Blume, Andreas Ortmann, “The effects of costless pre-play communication: Experimental evidence from games with Pareto-ranked equilibria.” Journal of Economic Theory, 132, 2007, 274 – 290. pdf

 

 

6.      Communication

  1. And altruism

 

Chaudhuri A, Graziano S, Maitra P. “Social learning and norms in a public goods experiment with inter-generational advice.”  Review of Economic Studies, 73 (2): 357-380, APR 2006. pdf

  1. And coordination

Schotter, Andy, Yaw Nyarko and Barry Sopher. “On the Informational Content of Advice: A Theoretical and Experimental Study.” Economic Theory, 2005. pdf

Schotter, Andy and Barry Sopher. “Social Learning and Convention Creation in Inter-Generational Games: An Experimental Study.” Journal of Political Economy, 2003, 111(3), pp. 498-529. pdf

Schotter, Andy. “Decision Making with Naive Advice.” American Economic Review, 2003, 93(2), pp. 196-201. pdf

Schotter, Andy and Antonio Merlo. “Learning By Not Doing: An Experimental Investigation of Observational Learning.”  Games and Economic Behavior , 2003, 42(1), pp. 116-136. pdf

  1. And deception

 

Akerlof, A.“The Market for Lemons: Quality Uncertainty and the Market Mechanism.” Quarterly Journal of Economics, 1970, 84(3), pp. 488-500. pdf

Brandts, J. and G. Charness. “Truth or Consequences: An Experiment.” Management Science, 2003, 49(1), pp. 116-130. pdf

Charness, G.“Self-Serving Cheap Talk: A Test of Aumann’s Conjecture.” Games and Economic Behavior, 2003, 33(2), pp. 177-194. pdf

Charness, G. and M. Dufwenberg. “Promises & Partnership.” 2004, Working Paper. pdf

Cooper, R., D. DeJong, R. Forsythe and T. Ross. “Communication in Coordination Games.” Quarterly Journal of Economics, 1992, 107(2), pp. 739-771. pdf

Crawford, V.  “A Survey of Experiments on Communication via Cheap Talk.” Journal of Economic Theory, 1998, 78(2), pp. 286-298. pdf

Gneezy, U. “Deception: The Role of Consequences.” American Economic Review, 2005, 95(1), pp. 384-394. pdf

Duffy, John and Nick Feltovich. “Words, Deeds and Lies: Strategic Behavior in Games with Multiple Signals.” 2005, Working Paper. pdf

 

 

7.      Over-Confidence

 

Benabou, Roland and Jean Tirole. “Self-Confidence and Personal Motivation.” Quarterly Journal of Economics, 2002, 117(3), pp. 871-915. pdf

 

Yildiz, Muhamet. “Wishful Thinking in Strategic Enviornments.” 2004, Working Paper. pdf

 

Yildiz, Muhamet. “Bargaining Without a Common Prior - An Immediate Agreement Theorem.” Econometrica, 2003, 71(3), pp. 793-811. pdf

 

Yildiz, Muhamet. “Waiting to Persuade.” Quarterly Journal of Economics, 2004, 119(1), pp. 223-248. pdf

 

Massey, Cade and Richard H. Thaler. “Overconfidence vs. Market Efficiency in the National Football League.” NBER Working Papers, 2005, 11270, National Bureau of Economic Research, Inc. pdf

 

Bengtsson, Claes, Mats Persson and Peter Willenhag.  “Gender and Overconfidence.” Economics Letters, 2005, 86(2), pp. 199–203. pdf

 

DellaVigna, Stefano and Ulrike Malmendier. “Overestimating Self-control: Evidence from the Health Club Industry.” NBER Working Papers, 2004, 10819, National Bureau of Economic Research, Inc. pdf

 

Camerer, Colin, and D. Lovallo. “Overconfidence and Excess Entry: An Experimental Approach.” American Economic Review, 1999, 89(1), pp. 306-318. pdf

 

Barber, Brad and T. Odean. “Boys will be Boys: Gender, Overconfidence, and Common Stock Investment.” Quarterly Journal of Economics, 2001, 116(1), pp. 261-292. pdf

 

Odean, T. “Do Investors Trade Too Much?”American Economic Review, 1999, 89(5), pp. 1279-1298. pdf

 

Malmendier, Ulrike and Geoffrey Tate. “CEO Overconfidence and Corporate

Investment.” 2002, Working Paper. pdf

 

Malmendier, Ulrike and Geoffrey Tate. Who Makes Acquisitions? CEO Overconfidence and the Market's Reaction.” 2003, Working Paper. pdf

 

8.      Belief Polarization

 

 

9.      Information and Signalling

 

Holt, Charlie and Lisa Anderson. “Information Cascades in the Laboratory." American Economic Review, 1997, 87(5), pp. 847-862. Received a 1999 ANBAR Citation of Excellence. pdf

 

 

10.  Time Consistency/Hyperbolic Discounting

 

The time-additive stationary model: Varian, Microeconomic Analysis, 3rd ed., pp 358-359.

 

Strotz, Robert. “Myopia and Inconsistency in Dynamic Utility Maximization.”

Review of Economic Studies, 1956, 23(3), pp. 165-180. pdf

 

Battigali, P. “Dynamic Inconsistency and Imperfect Recall.” Games and Economic Behavior, 1997, 20(1), pp. 31-50. pdf

 

Laibson, D. “Golden Eggs and Hyperbolic Discounting.” Quarterly Journal of Economics, 1997, 112(2), pp.443-477. pdf

 

Gruber, J. and B. Köszegi. “Is Addiction "Rational"? Theory and Evidence.” Quarterly Journal of Economics, 2001, 116(4), pp. 1261-1303. pdf

 

O'Donoghue, Ted  and Matthew Rabin. "Choice and Procrastination." Quarterly Journal of Economics, 2002, 116(1), pp. 121-160. pdf

 

O’Donaghue, Ted and Matthew Rabin. “Doing It Now or Later.” American Economic Review, 1999, 89(1), pp. 103-124. pdf

 

Gul, F. and W. Pesendorfer. “The Revealed Preference Theory of Changing

Tastes.” Review of Economic Studies, 2005, 72, pp. 429-448. pdf

 

Ok, E. and Y. Masatlioglu. “A General Theory of Time Preferences.” 2003, Working Paper. pdf

 

 

11.  Endowment Effect

 

Kahneman, D., J. Knetsch and R. Thaler. “Anamolies: The Endowment Effect, Loss Aversion, and the Status Quo Bias.” Journal of Economic Perspectives, 1991, 5(1), pp. 193-206. pdf

 

List, J. “The Effect of Market Experience on the WTA/WTP disparity: Evidence from a Field Experiment with Sports Memorabilia.” 2000, Working Paper. pdf

 

Knetsch, Jack L. “The Endowment Effect and Evidence of Nonreversible Indifference Curves.”American Economic Review, 1989, 79(5), pp. 1277-1284. pdf

 

Jack L. Knetsch  “The Endowment Effect and Evidence of Nonreversible Indifference Curves” The American Economic Review, Vol. 79, No. 5. (Dec., 1989), pp. 1277-1284. [Article ]

Harbaugh, William T., Kate Krause and Lise Vesterlund. “Are Adults Better Behaved Than Children? Age, Experience, and the Endowment Effect.” Economics Letters, 2001, (70)2, pp. 175-181. pdf

Thaler, Richard and Cass Sunstein. “Libertarian Paternalism.” American Economic Review, 2003, 93(2), pp. 175-179. pdf

 

 

12.  Sex and Beauty

Andreoni, J. and L. Vesterlund. “Which is the Fair Sex? Gender Differences in Altruism.” Quarterly Journal of Economics, 2001, 116 (1), pp. 293–312. pdf

 

Vesterlund, Lise and Muriel Niederle. “Do Women Shy Away from Competition? Do Men Compete Too Much?” NBER Working Papers, 2005, 11474, National Bureau of Economic Research, Inc. pdf

 

Andreoni, James and  Ragan Petrie. “Beauty, Gender and Stereotypes: Evidence From Laboratory Experiments.” 2005, Working Paper. pdf

 

Mobius, Markus M.and Rosenblat, Tanya S. “Why Beauty Matters.” The American

Economic Review, 2006, 96(1), pp. 222-235 pdf

 

13.  Auctions

Kagel, John.  “Auctions.” Chapter 7 in KR.

Thaler, Richard H. “Anomalies: The Winner's Curse.” Journal of Economic Perspectives,1988, 2(1), pp. 191-202. pdf

Milgrom, Paul. “Auctions and Bidding: A Primer (in Symposia: Auctions).” Journal of Economic Perspectives, 1989, 3(3), pp. 3-22. pdf

Lucking-Reiley, David. “Using Field Experiments to Test Equivalence Between Auction Formats: Magic on the Internet.” American Economic Review, 1999, 89(5), pp. 1063-1080. pdf

Riley, John G. “Expected Revenue from Open and Sealed Bid Auctions (in Symposia: Auctions).” Journal of Economic Perspectives, 1989, 3(3), pp. 41-50. pdf

Kagel, J., R. Harstad and D. Levin. “Information Impact and Allocation Rules in Auctions with Affiliated Private Values: A Laboratory Study.” Econometrica, 1987, 55(6), pp. 1275-1304. pdf

Andreoni, James and John H. Miller. “Auctions with Artificial Adaptive Agents.” Games and Economic Behavior, 1995, 10(1), pp. 39-64. pdf

Levin, Dan, John Kagel and Jean-Francois Richard. “Revenue Effects and Information Processing in English Common Value Auctions.” American Economic Review, 1996, 86(3), pp. 442-460. pdf

Anderson, Simon P., Jacob K. Goeree and Charles A. Holt. “Rent Seeking with Bounded Rationality: An Analysis of the All-Pay Auction.” Journal of Political Economy, 1998, 106(4), pp. 828-853. pdf

List, John A. and David Lucking-Reiley. “Demand Reduction in Multiunit Auctions: Evidence from a Sportscard Field Experiment.” American Economic Review, 90(4), 2000, pp. 961-972. pdf

Kagel, John H. and Dan Levin. “Common Value Auctions with Insider Information.” Econometrica, 1999, 67(5), pp. 1219-1238. pdf

 

Andreoni, James, Yeon-Koo Che and Jinwoo Kim.  “Asymmetric Information about Rivals’ Types in Standard Auctions: An Experiment.” 2005, Working Paper. pdf 

 

14.  Errors and Learning

 

  1. Adaptive and Evolutionary Learning

Andreoni, James and John H. Miller. “Can Evolutionary Dynamics Explain Free Riding in Experiments?” Economics Letters, 1991, 36(1), pp. 9-15. pdf

Andreoni, James and John H. Miller. “Auctions with Artificial Adaptive Agents.” Games and Economic Behavior, 1995, 10(1), pp. 39-64. pdf

Binmore, Ken, John Gale, and Larry Samuelson. “Learning to be Imperfect: The Ultimatum Game.” Games and Economic Behavior, 1995, 8(1), pp. 56-90. pdf

Crawford, Vincent P. “Adaptive Dynamics in Coordination Games.” Econometrica, 1995, 63(1), pp. 103-143. pdf

Van Huyck, John B., Joseph Cook and Raymond C. Battalio. “Selection Dynamics, Asymptotic Stability, and Adaptive Behavior.” Journal of Political Economy, 1994, 102(5), pp. 975-1005. pdf

 

  1. Belief Based Learning

Fudenberg, Drew and David Levine. “Measuring Players' Losses in Experimental Games.” Quarterly Journal of Economics, 1997, 112(2), pp. 507-536. pdf

Mookherjee, Dilip and Barry Sopher. “Learning and Decision Costs in Experimental Constant Sum Games.” Games and Economic Behavior, 1997, 19(1), pp. 97-132. pdf

Stahl, Dale O. “Boundedly Rational Rule Learning in a Guessing Game.” Games and Economic Behavior, 1996, 16(2), pp. 303-330. pdf

 

  1. Reinforcement Learning

Roth, Alvin E. and Ido Erev. “Learning in Extensive-Form Games: Experimental Data and Simple Dynamic Models in the Intermediate Term.” Games and Economic Behavior, 1995, 8(1), pp. 164-212. pdf

Erev, Ido and Alvin E. Roth. “Predicting How People Play Games: Reinforcement Learning in Experimental Games with Unique, Mixed Strategy Equilibria.” American Economic Review, 1998, 88(4), pp. 848-881. pdf

Slonim, Robert and Alvin E. Roth. “Learning in High Stakes Ultimatum Games: An Experiment in the Slovak Republic.” Econometrica, 1998, 66(3), pp. 569-596. pdf

 

  1. Combinations of Belief and Reinforcement

Camerer, Colin and Teck-Hua Ho. “Experience-Weighted Attraction Learning in Normal Form Games.” Econometrica, 1999, 67(4), pp. 827-874. pdf

Feltovich, Nick. “Reinforcement-Based vs. Belief-Based Learning Models in Experimental Asymmetric-Information Games.” Econometrica, 2000, 68(3), pp. 605-642. pdf

 

  1. Quantal Response Equilibrium

McKelvey and Palfrey. “Quantal Response Equilibria for Normal Form Games.” Games and Economic Behavior, 1995, 10(1),pp. 6-38. pdf

Charles Holt, Jacob Goeree and Tom Palfrey. “Regular Quantal Response Equilibrium.” 2005, Working Paper. pdf

 

Holt, Charlie and Jacob Goeree. “A Model of Noisy Introspection.” Games and Economic Behavior, 2004, 46(2), pp. 281-294. pdf

 

Holt, Charlie and Jacob Goeree. “Ten Little Treasures of Game Theory, and Ten Intuitive Contradictions.” American Economic Review, 2001, 91(5), pp. 1402-1422. pdf

 

 

15.  Neuroeconomics

 

Camerer, Colin, George Loewenstein and Drazen Prelec. “Neuroeconomics: How Neuroscience Can Inform Economics.” Journal of Economic Literature, 2005, 43(1), pp. 9-64. pdf

 

Bernheim, D. and A. Rangel. “Addiction and Cue-Triggered Decision Processes.” American Economic Review, 2004, 94(5), pp. 1558-1590. pdf