2017
From June 26th to June 30th
EXPERIMENTAL
ECONOMICS
Empirical tools
and methods
to investigate
economic behavior
PSE SUMMER SCHOOL
www.parisschoolofeconomics.eu
PSE SUMMER SCHOOL 2017
EXPERIMENTAL
ECONOMICS
EXPERIMENTAL ECONOMICS
Empirical tools and methods to
investigate economic behavior
th
th
From June 26 to June 30 2017
OVERVIEW
While experiments have been seen for long as a specific domain within economics (“experimental economics”), the
experimental method is now widely considered as a tool among others in the typical economist’s toolbox. Its use has
shed light on many areas, on the theoretical side (decision theory, game theory, markets) as on the more applied and
descriptive ones (policy, development, labour econ., IO, health econ., etc.). It has led to the blossoming of “behavioral
economics”, but its general relevance goes much deeper than that. The purpose of this programme is to provide young
researchers with the methodological skills required to pursue experiments in their own research.
The objective of the Experimental Economics programme is to offer young scholars a crash course in empirical methods
aimed at understanding economic behavior: how to design, implement and analyze an experiment so to answer a
research question. The summer school is methodological in nature, although typical results from behavioral economics
will be introduced as examples and illustrations on how protocols are designed to overcome
observation/measurement/identification issues. Participants will be trained in the aim of being able to soundly rely on
experiments in their future research projects.
The programme is divided in four parts: a series of general lectures on experimental methodology, a series of
specialized classes on practical tools (specific topics of relevance in the conduct of experiments), application tutorials
based on self-experimentation, workshop sessions where participants present and refine their experimental projects,
with feedback from the school’s speakers.
PROFESSORS
Béatrice Boulu-Reshef is an assistant professor at the University Paris-1 Panthéon Sorbonne, and a member of the
Collaboration Project “Behavioral Economics” at PSE. She obtained her PhD at the University of Lyon and was at the
Wharton School and the University of Virginia prior to joining Paris 1. Her research focuses on managerial decisionmaking, cooperation, and risk. http://www.beatrice-boulu-reshef.info/
Nathan Faivre and Vincent de Gardelle are CNRS researchers, associated to the Centre d’Economie de la Sorbonne.
Both are specialists of neuroscience and especially of consciousness and meta-cognition and have published articles in
leading journals in this field, such as Psychological Science, Cognition, Trends in Cognitive Science, Neuron, Science,
PNAS, etc.
http://www.lscp.net/persons/nfaivre/ │ http://www.parisschoolofeconomics.eu/en/de-gardelle-vincent/
Maxim Frolov is a research assistant at the LEEP (Laboratoire d’Economie Experimental de Paris). He is in charge of
maintaining the joint PSE-Paris 1 Lab and is a developper of experimental applications.
http://www.parisschoolofeconomics.eu/en/frolov-maxim/
Nicolas Jacquemet is a full professor at the University Paris-1 Panthéon Sorbonne and a member of Paris School of
Economics. His research combines experimental methods and econometrics to study discrimination, the effect of
personality traits on economic behavior, the role of social pre-involvement in strategic behavior and experimental
game theory in general. http://www.parisschoolofeconomics.eu/en/jacquemet-nicolas/
PSE SUMMER SCHOOL 2017
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PSE SUMMER SCHOOL 2017
EXPERIMENTAL ECONOMICS
Olivier L’Haridon is a full professor at the University of Rennes-1. He is a leading specialist in the domain of risk and
uncertainty with numerous publications in various prestigious outlets (AER, Management Science, etc.).
https://sites.google.com/site/olharidon/
Jean-François Laslier is a CNRS research director at PSE. His research interests are at the crossing of political economy,
game theory and experimental economics. He has published more than 60 articles in leading international journals.
http://www.parisschoolofeconomics.eu/en/laslier-jean-francois/
Fabrice Le Lec is an assistant professor at the University Paris-1 Panthéon Sorbonne, after post-docs in Amsterdam and
Berlin, and does research on social preferences, risk and the effect of choice, with a strong emphasis on merging
insights from psychology with economic theory. http://perso.univ-paris1.fr/flelec
Angelo Secchi is Professor of Economics at Université Paris 1 Panthéon-Sorbonne and Associate member of the Paris
School of Economics. His research covers industrial dynamics, international trade, economic geography and applied
econometrics and it has been published in several peer-reviewed international journals.
http://www.parisschoolofeconomics.eu/en/secchi-angelo/
Franck Zenasni is a full Professor of Differential Psychology at the Université Paris Descartes. After a post-doc at Institut
Gustave Roussy where he examined the impact of treatment on the quality of life of patients, he received a Fondation
de France grant to study the academic skills and specific emotional and creative abilities of gifted individuals. His
researches now focus on creativity and imagination; emotional intelligence, emotional traits and affective style at work
and in creativity and the definition and description of applied empathy.
https://www.researchgate.net/profile/Franck_Zenasni
Programme Supervisor: Fabrice Le Lec
SCHEDULE
Monday June, 26th
8 am - 9 am Welcome session
9 am - 11 am Nicolas Jacquemet, Experimental Methodology (Why?)
11 am - 11.15 am Coffee break
11.15 am - 12.45 pm Béatrice Boulu-Reshef and Fabrice Le Lec, Application 1
12.45 pm - 2 pm Lunch
2 pm - 4 pm Fabrice Le Lec, Tools: Incentivized methods
4 pm - 4.15 pm Coffee break
4.15 pm - 6.15 pm Jean-François Laslier, Tools: The role of theory in experiments
Tuesday June, 27th
9 am - 11 am Nicolas Jacquemet, Experimental Methodology (How? 1)
11 am - 11.15 am Coffee break
11.15 am - 12.45 pm Béatrice Boulu-Reshef and Fabrice Le Lec, Application 2
12.45 pm - 2 pm Lunch
2 pm - 4 pm Olivier L’Haridon, Preferences over time and uncertainty
4 pm - 4.15 pm Coffee break
4.15 pm - 6.15 pm Maxim Frolov, A presentation of experimental platforms
Wednesday June, 28th
9 am - 11 am Nicolas Jacquemet, Experimental Methodology (How? 2)
11 am - 11.15 am Coffee break
11.15 am - 12.45 pm Béatrice Boulu-Reshef, How to write experimental instructions?
12.45 pm - 2 pm Lunch
2 pm - 3.45 pm Workshop on personal research project
3.45 pm - 4 pm Coffee break
4 pm - 5.30 pm Workshop on personal research project
PSE SUMMER SCHOOL 2017
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PSE SUMMER SCHOOL 2017
EXPERIMENTAL ECONOMICS
Thursday June, 29th
9 am - 11 am Nicolas Jacquemet, Experimental Methodology (What for? 1)
11 am - 11.15 am Coffee break
11.15 am - 12.45 pm Béatrice Boulu-Reshef and Fabrice Le Lec, Application 3
12.45 pm - 2 pm Lunch
2 pm - 3.30 pm Workshop
3.30 pm - 3.45 pm Coffee break
3.45 pm - 5.45 pm Franck Zenasni, Psychometric methods
Friday June, 30th
9 am - 11 am Nicolas Jacquemet, Experimental Methodology (What for? 2)
11 am - 11.15 am Coffee break
11.15 am - 12.45 pm Nathan Faivre and Vincent de Gardelle, Physiological response measures
12.45 pm - 2 pm Lunch
2 pm - 4 pm Workshop
4 pm - 4.15 pm Coffee break
4.15 pm - 6.15 pm Angelo Secchi, Econometrics of experimental data
PREREQUISITES
The requirements to follow the course are a good background in economics and in particular microeconomics and a
working knowledge of English.
PSE SUMMER SCHOOL 2017
www.parisschoolofeconomics.eu
A SUMMER
ON THE JOURDAN CAMPUS…
The 2017 Summer School will take place in the new PSE building, situated on the Jourdan campus in the 14th
arrondissement of Paris, which has just been officially inaugurated by President François Hollande. Designed by the
architectural company TVAA and jointly funded by the Région Île-de-France, the central state and the city of Paris, the
12 500 m² building houses researchers, students, and administrative teams of the Paris School of Economics and the
Ecole normale supérieure.
PSE SUMMER SCHOOL 2017
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EXPERIMENTAL ECONOMICS
PSE SUMMER SCHOOL 2017
EXPERIMENTAL ECONOMICS
Experimental Methodology: objectives, methods
and uses of experiments in economics
Nicolas Jacquemet
OBJECTIVES
This course takes place every day
The course provides an overview of the use of laboratory experiments as an empirical method to investigate research
questions in economics and social sciences. The focus is methodological, and illustrated by examples and applications
taken from the literature. The whole spectrum of methodological issues will be covered: Objectives, methods and uses
of experiments in economics.
COURSE STRUCTURE & REFERENCES
1. Why? The need for experimental methods in economics
a. The emergence of experiments in economics
i. What is it ? An overview of the research program
ii. The need for experimental methods in empirical economics
b. The need for experimental methods in economic theory
i. Reality, theory and experiments: some definitions
ii. Testing theory: how experiments and theory interact
iii. Searching for facts: how experiments and reality interact
Suggested readings
- Harrison, G. W., & List, J. A. (2004). “Field experiments”. Journal of Economic literature, 42(4), 1009-1055.
- Roth, A. E. (1986). “Laboratory experimentation in economics”. Economics and Philosophy, 2(02), 245-273.
- Samuelson, L. (2005). “Economic theory and experimental economics”. Journal of Economic Literature, 43(1),
65-107.
2. How? Laboratory experiments in practice
a. The design of experiments – the actual environment
i. The use of monetary incentives
ii. Experimental parameters: control and treatments
b. The design of experiments – the perceived environment
i. Writing experimental instructions
ii. Perceived opponents and learningThe emergence of experiments in economics
Suggested readings
- Smith, V. L. (1982). “Microeconomic systems as an experimental science”. The American Economic Review,
72(5), 923-955.
- Siakantaris, N. (2000). “Experimental economics under the microscope”. Cambridge Journal of Economics,
24(3), 267-281.
- Zizzo, D. J. (2010). “Experimenter demand effects in economic experiments”. Experimental Eco., 13(1), 75-98.
3. What for? What laboratory experiments tell us
a. What laboratory experiments tell us
i. About the real world: external validity
ii. Whispering to the ears of princes: behavioral public policies
Suggested readings
- Schram, A. (2005). “Artificiality: The tension between internal and external validity in economic experiments”.
Journal of Economic Methodology, 12(2), 225-237.
- Henrich, J., Heine, S. J., & Norenzayan, A. (2010). “The weirdest people in the world?”. Behavioral and brain
sciences, 33(2-3), 61-83.
- Falk, A., & Fehr, E. (2003). “Why labour market experiments?”. Labour Economics, 10(4), 399-406.
- Sunstein, C. R., & Thaler, R. H. (2003). “Libertarian paternalism is not an oxymoron”. The University of Chicago
Law Review, 1159-1202.
- Mitchell, G. (2005). “Libertarian paternalism is an oxymoron”. Northwestern University Law Review, 99(3).
- Munnell, A. H. (2003). “A Non-libertarian Paternalist’s Reaction to ‘Libertarian Paternalism is Not an
Oxymoron.’”. In Comment delivered at the FRB of Boston’s 48th Annual Conf., Chatham MA, June (pp. 8-10).
- Shogren, J. F. (2006). “A rule of one”. American Journal of Agricultural Economics, 88(5), 1147-1159.
PSE SUMMER SCHOOL 2017
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EXPERIMENTAL ECONOMICS
PSE SUMMER SCHOOL 2017
EXPERIMENTAL ECONOMICS
Tools: Practical approaches to the conduct
of experimental research
B. Boulu-Reshef, N. Faivre, V. de Gardelle, O. L’Haridon,
J-F. Laslier, F. Le Lec, A. Secchi and F. Zenasni
This course takes place every day
OBJECTIVES
The aim of the eight “tools” sessions is to provide participants an overview on some specific practical issues of running
experiments and methods to overcome them. Each sessions dedicate to the issues at hand, the available methods and
their limits and strengths (in particular in comparison with each other).
COURSE STRUCTURE & REFERENCES
1. TOOL 1: Incentivized methods to measure preferences, Fabrice Le Lec
One of the golden rules of experimental research in economics is to ensure incentive compatibility and (payoff)
salience in the experimental design. Various methods have been proposed to achieve that goal, all of them
presenting an imperfect solution to the trade-off between accuracy and quantity of data points. Within- and
between subjects approaches will be presented, in relation to the question of incentivizing multiple decisions for
within-subjects design, the different monetary valuation elicitation procedures compared and the strategy-method
contrasted with the direct-response one for experimental games.
References:
- Charness, G., Gneezy, U., & Kuhn, M. A. (2012). “Experimental methods: Between-subject and within-subject
design”. Journal of Economic Behavior & Organization, 81(1), 1-8.
- Andersen, S., Harrison, G. W., Lau, M. I., & Rutström, E. E. (2006). “Elicitation using multiple price list formats”.
Experimental Economics, 9(4), 383-405.
- Brandts, J., & Charness, G. (2011). “The strategy versus the direct-response method: a first survey of experimental
comparisons”. Experimental Economics, 14(3), 375-398.
- Charness, G., Gneezy, U., & Halladay, B. (2016). “Experimental methods: Pay one or pay all”. Journal of Economic
Behavior & Organization, 131, 141-150.
2. TOOL 2: The role of theory in experiments, Jean-François Laslier
The connections between theory and experiments are multidimensional. Theory permits the construction of
measuring tools. It also influences what is considered a relevant experimental methodology. And eventually,
experiments allow to test theories. These links are explored in this lectures emphasizing how both experiments
and theory cross-fertilize each other. A special focus will be put on voting experiments and two specific questions
in political science: the question of participation (Why do people vote?) and the question strategic voting (How do
they vote?).
References:
- Blais A., Laslier J.-F. & Van der Straeten, K. (2016), “Introduction to Voting Experiments”. In: Voting Experiments,
edited by A. Blais, J.-F. Laslier and K. Van der Straeten, Springer, pp. 1–16.
- Blais A., Pilet J.-B., Van der Straeten K., Laslier J.-F. & Héroux–Legault M. (2014), “To vote or to abstain? An
experimental test of rational calculus in First Past the Post and PR elections”, Electoral Studies 36: 39–50.
- Blais A., Laslier J.-F., Sauger N. & Van der Straeten K. (2010), “Strategic, sincere, and heuristic voting under four
election rules: an experimental study”, Social Choice and Welfare, 35(3): 435–472.
3. TOOL 3: Preferences over time and uncertainty, Olivier L’Haridon
Preferences over time and uncertainty are critical drivers of economic behavior in many contexts. Several
experimental methods have been developed to measure them. These methods serve to elicit preferences over
time and uncertainty either as control variables in more general experiments, but also to test decision-theoretic
models. These methods are presented in this lecture with a specific focus on their relative merits. A special
emphasis will be put on robust methods to elicit cumulative prospect theory parameters for decision under risk.
PSE SUMMER SCHOOL 2017
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PSE SUMMER SCHOOL 2017
EXPERIMENTAL ECONOMICS
References:
- Abdellaoui, M. (2000). “Parameter-free elicitation of utility and probability weighting functions”. Management
Science, 46(11), 1497-1512.
- Abdellaoui, M., Bleichrodt, H., l'Haridon, O., & Paraschiv, C. (2013). « Is there one unifying concept of utility? An
experimental comparison of utility under risk and utility over time”. Management Science, 59(9), 2153-2169.
- Wakker, P., & Deneffe, D. (1996). “Eliciting von Neumann-Morgenstern utilities when probabilities are distorted
or unknown”. Management science, 42(8), 1131-1150.
- Wakker, P. P. (2010). “Prospect theory: For risk and ambiguity”. Cambridge university press.
4. TOOL 4: A presentation of experimental platforms, Maxim Frolov
The lecture will provide an overview of available tools for experimental economics /neuroeconomics (Ztree, Otree,
Willow, LE2M, SoPHIE, PandoLab, MultiStage, jMarkets, ConG, BoXS, Regate, PEET, LimeSurvey, LabSee, EconPort,
Psychtoolbox, Psychopy) as well as recruiting systems (ORSEE, HROUT, MooreRecruiting). This will be completed
with an introduction to programming an experiment, based on Ztree.
References:
- Fischbacher U. (2007), “z-Tree: Zurich Toolbox for Ready-made Economic Experiments”, Experimental Economics
10(2), 171-178
- Chen D.L., Schonger M. & Wickens C. (2016), “oTree—An open-source platform for laboratory, online, and field
experiment”s, Journal of Behavioral and Experimental Finance, 9 88–97
- Greiner B. (2015), “Subject Pool Recruitment Procedures: Organizing Experiments with ORSEE”, Journal of the
Economic Science Association 1 (1), 114-125.
5. TOOL 5: How to write experimental instructions? Béatrice Boulu-Reshef
The goal of instructions is to make sure that the experimental subjects fully understand the rules of an experiment.
If subjects do not understand the rules, control is lost, and the experiment is invalidated and unpublishable. Thus,
learning how to write experimental instructions is crucial. This lecture focuses on teaching how to write
experimental instructions. We explain what experimental instructions need to achieve, and hence, list the rules
that are commonly used by experimental economists. We also review the features of experimental instructions
that are debated in the literature. The lecture reviews typical instructions for the main types of experiments.
Students will work on writing instructions and will discuss their work in class.
References:
- Davis, D. and C. A. Holt (1993), “Experimental Economics”, Princeton University Press.
- D. Friedman and S. Sunder (1994), “Experimental Methods: A Primer for Economists”, Cambridge University
Press.
- Guala F. (2005), “The Methodology of Experimental Economics”. New York: Cambridge University Press.
6. TOOL 6: Psychometric methods, Franck Zenasni
The aim of this class is to introduce the main principles of psychometrics and principally the development and the
use of test/questionnaire. We will thus explain what the psychometrics qualities expected from test are. For that
purpose we will use examples from the study of conative stable individual characteristics such as personality traits.
References:
- Ashton, M. C., & Lee, K. (2009). “The HEXACO-60: A short measure of the major dimensions of personality”.
Journal of Personality Assessment, 91, 340-345.
- Kline, P. (2014). “The new psychometrics: Science, psychology and measurement”. New York: Routledge.
7. TOOL 7: Physiological response measures, Nathan Faivre & Vincent de Gardelle
The lecture will present methods to measure physiological responses of subjects and how they can be useful to
economic research. Three main topics will be presented: the use of response times with drift diffusion modeling for
a fine-grained analysis of choice, methods to assess cognitive and emotional states with pupillometry,
electrodermal response and heart rate, and measures of brain responses with electrophysiology and brain imaging.
References:
- Ratcliff, R., Smith, P. L., Brown, S. D., & McKoon, G. (2016). “Diffusion Decision Model: Current Issues and History,
Trends in cognitive sciences”, 20(4), 260-281.
- Sirois, S. and Brisson, J. (2014), “Pupillometry”, Cognitive Science, 5: 679–692.
PSE SUMMER SCHOOL 2017
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PSE SUMMER SCHOOL 2017
EXPERIMENTAL ECONOMICS
- Sequeira, H., Hot, P., Silvert, L., & Delplanque, S. (2009). “Electrical autonomic correlates of emotion”,
International journal of psychophysiology, 71(1), 50-56.
- Crone, E. A., Somsen, R. J., Beek, B. V., & Van Der Molen, M. W. (2004). “Heart rate and skin conductance analysis
of antecedents and consequences of decision making”, Psychophysiology, 41(4), 531-540.
- Ruff, C. C., & Huettel, S. A. (2013). “Experimental methods in cognitive neuroscience”, Neuroeconomics: Decision
making and the brain, 2, 77-108.
8. TOOL 8: Econometrics for experimental data, Angelo Secchi
This module provides an overview on econometrics for experimental data with a strong emphasis on nonparametric techniques. Estimating probability densities, distribution free tests et nonparametric regressions will
be discussed together with examples and practical suggestions on how to implement them.
References:
- Silverman, B.W., (1986). “Density Estimation for Statistics and Data Analysis”, Chapman & Hall.
- Racine, J.S. (2008), “Nonparametric Econometrics: A Primer, Foundations and Trends” in Econometrics: Vol. 3: No
1, pp 1-88.
- Hollander, M., Dougla A. Wolfe and E. Chicken (2014), “Nonparametric Statistical Methods”, third edition, Wiley,.
PSE SUMMER SCHOOL 2017
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EXPERIMENTAL ECONOMICS
PSE SUMMER SCHOOL 2017
EXPERIMENTAL ECONOMICS
Practice-based Applications
Béatrice Boulu-Reshef, Fabrice Le Lec
and Maxim Frolov
This course takes place every-day
As a complement to lectures (Methodology and Tools), participants will take part in experiments. The purpose is to
show them in vivo how experimental protocols can be implemented and illustrate the relevance or shortcomings of
some practices and methods. Moreover, being in the shoes of a subject in the lab makes salient what typical mistakes
can be avoided when researchers design an experiment and what effects some features can have on observed
behavior. Either classic studies that have set standards for the field or counter-examples to good practice will be run.
PSE SUMMER SCHOOL 2017
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EXPERIMENTAL ECONOMICS
PSE SUMMER SCHOOL 2017
EXPERIMENTAL ECONOMICS
Workshop sessions
Various speakers
This course takes place on Wednesday, Thursday and Friday
Some sessions are dedicated to the interaction of experienced researchers in the field with the participants of the
summer school. The purpose is to have the participants’ projects discussed or deepened by discussions (based on short
presentations) with a set of speakers from the lectures. On-going projects (experimental design conception) are
welcome and encouraged, rather than already run experiments, to permit a maximal methodological gain.
PSE SUMMER SCHOOL 2017
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HOW TO APPLY TO THE PSE SUMMER SCHOOL 2017
Presentation
Our ten one-week programmes are entirely run in English. Each includes a total of around 30 hours instruction and
consists of different thematic courses that are complementary. At the end of the programme, you will receive a
certificate. You are expected to participate in all of the courses of their one-week programme; you can follow only one
programme per week, but can apply to three consecutive ones.
Each programme is equivalent to 3 ECTS. Students interested in this transfer should contact their universities.
Here are the links to the different programmes (lectures, Professors, schedule, prerequisites etc.):
CLIMATE
CHANGE
MACROECO.
MICROECO.
MIGRATION
ECONOMICS
DEVELOPMENT
EXPERIMENT.
ECONOMICS
HEALTH
TRADE
BOUNDED
RATIONALITY
INDUSTRIAL
ORGANIZATION
Participant profiles and selection
The PSE Summer School is aimed at professionals, researchers, as well as graduate students in Economics and Finance
(Masters and PhD). Undergraduate students in Economics will be considered only if their profile is exceptionally strong.
To be included in your application file:
• A current Curriculum Vitae in pdf format
• A copy of your most advanced degree
• A short motivation text
•
•
•
A profile picture [not used per se in the application process]
For Students: proof of status
Optional - Letter(s) of recommendation
On www.pse-application.eu candidates can apply continuously till the final deadline, which is Monday May the 15th.
You can start the process whenever you want, create and save your profile step by step, until the final submission. Each
application will be reviewed by the programme supervisor(s) within 15 days afterwards. Once accepted, you will have
then 15 days to pay the total fees and therefore validate your participation. You will then receive detailed information
about the courses, workshops, and social events, as well as suggestions for accommodation.
We advise you not to wait until the last moment. Applications will be reviewed continuously: if the maximum number
of participants is exceeded, applicants will be put on the wait list.
Fees
Fees include lunches and
coffee breaks every day,
as well as the welcome
and
the
farewell
cocktails. The fees do not
include accommodation,
transport or any other
services.
Cancellation policy - Confirmed participants who wish to cancel must do so in writing by email. When withdrawing from
the programme, participants will have their tuition fees partially refunded as follows:
- Cancellation before May 1st, 2017: 80% refund
- Cancellation before June 1st, 2017: 50% refund
- Cancellation after June 1st, 2017: no refund possible
Any questions? [email protected]
PSE SUMMER SCHOOL 2017
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PSE SUMMER SCHOOL
2017, PARIS
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