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Economics Lab：An intensive course in experimental economics
Daniel Friedman and Alessandra Cassarpublished 2004
PART I
Introductions 1
An intensive course in experimental economics 3
DANIEL FRIEDMAN
1 The Trento Summer School: adaptive economic dynamics 5
AXEL LEIJONHUFVUD
2 Economists go to the laboratory: who, what, when, and why 12
DANIEL FRIEDMAN AND ALESSANDRA CASSAR
PART II
Laboratory methods 23
3 First principles: induced value theory 25
DANIEL FRIEDMAN AND ALESSANDRA CASSAR
4 The art of experimental design 32
DANIEL FRIEDMAN AND ALESSANDRA CASSAR
5 Dialogues with the data 38
DANIEL FRIEDMAN AND ALESSANDRA CASSAR
6 Do it: running a laboratory session 65
DANIEL FRIEDMAN AND ALESSANDRA CASSAR
vi Contents
7 Finish what you started: project management 75
DANIEL FRIEDMAN AND ALESSANDRA CASSAR
PART III
Applications 81
8 Markets 83
DANIEL FRIEDMAN AND ALESSANDRA CASSAR
9 Auctions 92
DANIEL FRIEDMAN AND ALESSANDRA CASSAR
10 Oligopoly 105
STEFFEN HUCK
11 Games 115
ROSEMARIE NAGEL
12 Learning direction theory and impulse balance equilibrium 133
REINHARD SELTEN
13 Imitation equilibrium 141
REINHARD SELTEN
14 Choice anomalies 148
DANIEL FRIEDMAN AND ALESSANDRA CASSAR
15 Policy analysis and institutional engineering 161
DANIEL FRIEDMAN AND ALESSANDRA CASSAR
PART IV
Student projects 171
16 An asset market experiment
JOHN LATSIS, TOBIAS LINDQVIST, EVAN MOORE,
AND KYU SANG LEE 173
17 Bifurcation in a stock market experiment 179
DEBORAH LACITIGNOLA AND ALESSANDRA LA NOTTE
18 Price instability and search 187
MIGUEL CURA-JURI AND SEBASTIAN GALIANI
Contents vii
19 Animal-spirits cycles 195
JASON HWANG
20 The restart effect
JINKWON LEE AND JOSE LUIS LIMA 202
21 Zone of agreement bias in integrative negotiation 210
FABIO FERIOZZI, LIVIA REINA, AND ALESSANDRO SCARTEZZINI
22 Culture from scratch: evolution of an experiment 220
WILLIAM ROBERT NELSON JR, ELENNA R.DUGUNDJI, JANE LI, AND
MARCO TECILLA
Index 229