The module aims at introducing students to different areas of economic theory scrutinized with the aid of empirical analysis and experimental research. Subjects covered may vary from year to year with the ultimate goal of showing, through a reasoned selection, the breadth of issues that are the subject of study in Economics and that are not normally touched upon at the undergraduate level.
Articles, handouts, and other stuff made available by the lecturer.
Learning Objectives
By the end of the course the student will have gained an understanding of the benefits, and also the limitations, of using economic theory and its methods to analyze relevant economic and social issues.
Prerequisites
Principles of Microeconomics and Game Theory.
Teaching Methods
Lectures, class experiments, lab sessions.
Further information
See the course Moodle page at e-l.unifi.it.
The one time password will be revealed in class.
Type of Assessment
1. Written exam (40%)
2. Class participation (20%)
3. Coursework: group work, written report, and class presentation (40%)
Course program
Subjects covered vary from year to year and may touch on topics such as information economics, auctions, behavioral game theory and social preferences, ethics and economics. Brief diversions into specific sub-fields such as law and economics, and socioeconomics are also possible. In addition, specific advanced topics in game theory (repeated, evolutionary, cooperative, and psychological games) can be briefly (and simply) introduced in an instrumental way to the presentation of the main subjects.
Program I am planning to cover in this academic year (but changes are possible)
Rationality in games:
- The prisoner's dilemma in the wild: strictly and weakly dominant strategies
- Cheap talk and non-credible threats
- The beauty contest. Full rationality vs. level k reasoning
- Experiments on the guessing game
Introduction to repeated games
Social preferences in games:
- The ultimatum game
- Experiments on the ultimatum game. The Binmore critique. Fairness and strategy
- Ultimatum game in the wild: the role of culture in shaping humans' behaviour.
- The trust game
- Experiments on the trust game. The emergence of trust in young children
- The public goods game
- Experiments on the public goods game. Altruism, confusion and strategy
Theories of individual decision making with social preferences.
Very short introduction to evolutionary game theory
Cooperation and human evolution
Very (very) short introduction to cooperative game theory
Applications of cooperative game theory
- Bargaining
- The law and economics of property rights
Ethics and economics
- Introduction to the economics of crime
- Neo-classical theories of crime. The determinants of the level of criminal activity: The Roe vs. Wade case
- Alternative approaches to the Economics of Crime
- Experiments on cheating
Ethics and rationality: Would you kill the fat man?