EC343 – Behavioural Economics
Deadline: Monday 22nd January 2024 at 12 pm (GMT)
Please choose one of the following online games to run your experiment.
Ultimatum game
Trust game
The Traveler’s Dilemma
Battle of the sexes
We expect you to recruit at least 20 subjects and run an experiment with them. You must
collect and analyse all the data to answer the questions below.
Experimental Set-up:
To set up your experiment, first, access the game from the website https://economics_xfffe_games.com/games
On the website, access your choice of the game. To do this:
1. On the home page, choose ‘Create a Multiplayer Game and Logins’.
2. Click on ‘Game Theory’.
3. You will see a list of games. Scroll down until you find your choice and click on
‘Choose this Game’.
4. Select the number of players and options.
To set up your experiment, you will need a group of 2 to 20 subjects, not including yourself.
The minimum size of the group is 2. If you choose this group number, you will need to run
10 experimental sessions to collect the data from 20 subjects. You need to have the exact
number of subjects you set up in each session. For example, if you set up the game with 6
players, you will have to have 6 subjects to play at the same time.
You will be the game administrator (the role I played in the class experiments). The
participants can be classmates from this course, friends, or family. You must ensure that all
participants write their nicknames when prompted. As the administrator, you will have access
to the results, which you must save in an excel spreadsheet to upload on Turnitin and, when
needed, to justify the answers to the questions below.
Be sure to SAVE THE RESULTS FROM EACH ROUND. The results for the payoffs each
round cannot be retrieved ex-post, so make sure you save the results of payoffs each round.
Questions:
a. What is the equilibrium of your chosen game Explain the details of the game and show
how you derived the equilibrium. [30 points]
b. Based on what you have learned in this module, what results do you expect from the game
you chose while played by human subjects State your hypotheses clearly and with details.
[20 points]
c. Discuss the experimental setting, procedures and rationale in detail. [10 points]
d. Discuss the results of your experiment. [15+10+10+5=40 points]
Present the results in a table and/or diagram, along with explanations.
Did the subjects play according to the Nash equilibrium as in part (a) Explain. If not,
how might you account for the deviation from the Nash equilibrium
Did your initial hypotheses turn out to be correct Explain. If not, why
Did you observe any other phenomena of interest
I expect you to discuss these answers with references to topics in behavioural economics
covered in the course or from additional literature. I also expect you to back up your
arguments with statistics from the experimental data. Finally, do not forget to append your
data at the end.
