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Behavioral and Experimental Economics

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  • MS Applied Econ Concentrations

Design experiments and study how people make decisions.

Students using the CAB Lab for visual heatmaps.

Learn to measure how people actually make decisions. The Koraleski CAB Lab provides unique opportunities for students to learn how to combine physiological signals with human behavior to build a better understanding of the way that customers think and feel about products, and to measure cognition in many contexts.

Two-thirds of concentration courses take place inside the CAB Lab, where students design studies using tools such as eye tracking, biometric sensors, and facial-expression analysis. This includes training in survey methods, lab and field experiments that few programs offer as part of coursework.

Students learn about the roles that heuristics play in human decision-making along with strategic interactions between individuals. They measure each of these interactions in lab and experimental settings, providing a rich skill set that can be immediately applied to online A/B tests, surveys, and other studies to generate commercial insights across a broad array of industries.

Concentration Learning Goals

  1. Experimental design and implementation
  2. Use of laboratory, survey, and field-research instruments
  3. Analysis and communication of experimental data

Students learn to apply these methods to problems faced by businesses, governments, and other organizations. These skills blend with analytics, where experiments on digital platforms drive innovation in customer interactions.

Concentration Courses

Course Number Course Title Description Credits
ECON 8756 Behavioral and Experimental Economics

This course explores behavioral economics, one of the fastest growing fields of the economics discipline, and experimental economics, which provides a framework in which to study behavioral and other economic research questions. Topics in these areas include Prospect Theory, Heuristics, Nudges, and Experimental Design focused on testing behavioral models of economic choice.

3
ECON 8766 Game Theory: Applications and Experiments

This course covers the field of game theory from foundations like dominant strategies and Nash Equilibria to advanced applications like signaling games, repeated games, and evolutionarily stable strategies. The course will also cover the design of experiments and studies applying game theory to real-world problems.

3
ECON 8216 Industrial Organization

In this class we will examine why firms and industries behave the way that they do. We will explore why some industries face intense competition while others enjoy large profits, why some industries offer only bundles, and why some firms buy up their supply chain when others do not. This course will use your economic knowledge, a psychology (behavioral economics) and game theory to answer questions like "Why does everyone hate the cable company?" and "Why are CEOs given so many stock options?" With this course, you will better understand how to design and price products, what industry characteristics results in larger profits, and numerous other skills relevant to businesses of all sizes.

3

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  • MS Applied Econ Concentrations

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