Game theory, one of the most widely used mathematical tools in economics and the social sciences, builds on a foundation of strong assumptions about agent’s preferences and how agents make decisions. Two decades of work by experimental economists has cast serious doubts on these assumptions. Theorists and experimenters have responded by developing new theories that incorporate behavioural elements. The goal of this course is to familiarize you with research related to some of the most important topics of current research in behavioural game theory and to help you start thinking about potential research projects in this area.
Topics we will cover include lie and guilt aversion, bounded rationality, infinitely repeated games, and coordination games. We will stress understanding how the various papers, both old and new, relate to current topics of research. The main emphasis of the course will be on experiments related to behavioural game theory. We will also go through some theory, but only to the degree that understanding the theory is necessary to understanding the experimental literature.
This course will be held in a hybrid format (pandemic permitting). The class will feature a mixture of live lectures, group discussions, and group work to develop and present a research idea. We strongly recommend in-person participation, as this will make it much easier to fully participate in class discussions and group work, but understand that some students will not be able to participate in-person for a variety of reasons.