1. Semester: III/IV
2. Number of credits: 4

Preamble
Experimental Economics has now become an established part of the discipline. The objective of this four credit elective course  is to introduce the student to experimental techniques which will enable them to test economic theory in the laboratory as well as in the field.

Module 1: Introduction to Experimental Methods (14 Lectures)
Induced Value Theory-Experimental Design: Randomisation, blocking and other efficient designs- dealing with human subjects- mechanics of conducting an experiment including guidelines-data analysis and statistical testing –reporting the results

Module 2: Experiments –I (10 Lectures)
Games: Beauty contest game with variations- One shot Ultimatum game- Public goods experiment –Voluntary contributions mechanisms with provision points-Productivity under group incentives.

Module 3: Experiments II (12 Lectures)
Market structures and price discrimination-incentive mechanism for control of monopoly-Theories of choice under uncertainty and individual decision making under uncertainty-Search decisions-Expectations and asset valuations

Module 4: Markets and Mechanisms (12 Lectures)
Markets:-Classic experiments-Hayek Hypothesis-Learning in markets-Auctions: Classical theoretical and empirical results-Implementation games and mechanism design: Experimental evidence on canonical, Groves and Layard and Walker mechanisms.