The National Centre for Econometric Research (NCER) will hold a short course in Experimetrics on Monday 20 July and Tuesday 21 July in Z850 with Professor Peter Moffatt.

## Times

Monday 20 July - 12pm to 5pm

Tuesday 21 July - 9am to 12pm

## Location

This short course will be held in room Z850, Z Block, Gardens Point Campus, Queensland University of Technology, Brisbane.

## Course Convener

Professor Peter Moffatt, from the University of East Anglia

## Course

### PART I: Theory Testing, regression, and dependence

- Introduction
- Experimental Auctions

2.1. Overview of auction theory

2.2. Carrying out an experimental auction

2.3. The simulated auction data - Tests of auction theory

3.1. A test of RNNE in a second price common value auction - Tests of comparative static predictions

4.1. Standard treatment tests

4.2. Treatment testing using a regression

4.3. Accounting for dependence: the ultra-conservative test

4.4. Accounting for dependence in a regression

4.5. Accounding for dependence: the block bootstrap - Multiple regression with auction data

5.1. Introducing the effect of uncertainty

5.2. Introducing the effect of experience

5.3. Introducing the effect of cash balance - Panel data estimators

6.1. Random effects versus fixed effects - Multi-level modelling
- Modelling data from contest experiments

8.1. The Tullock contest

8.2. A contest experiment

8.3. Analysis of data from a contest experiment - Meta Analysis

### PART II: Dealing with heterogeneity: Finite Mixture Models

- Introduction
- Mixture of two normal distributions
- The fmm command in STATA
- The level-k model for the “beauty contest game”
- A public goods experiment

14.1. Background

14.2. Experiment

14.3. data

14.4. The finite mixture 2-limit tobit model with tremble

14.5. Program

14.6. Results

14.7. Posterior Type Probabilties

## Course files

Experimetric course files (zip, 168kb)

## Preliminary Reading

Kagel, J. H., & Levin, D. (1986). The winner's curse and public information in common value auctions. *The American economic review*, 894-920.

Kagel, J. H., Levin, D., & Harstad, R. M. (1995). Comparative static effects of number of bidders and public information on behavior in second-price common value auctions. *International Journal of Game Theory*, 24(3), 293-319.

Ham, J. C., Kagel, J. H., & Lehrer, S. F. (2005). Randomization, endogeneity and laboratory experiments: The role of cash balances in private value auctions. *Journal of Econometrics*, 125(1), 175-205.

Chowdhury, Subhasish M., Roman M. Sheremeta, and Theodore L. Turocy. (2014) "Overbidding and overspreading in rent-seeking experiments: Cost structure and prize allocation rules." *Games and Economic Behavior* 87: 224-238.

Sheremeta, Roman M. (2013) "Overbidding and heterogeneous behavior in contest experiments." *Journal of Economic Surveys* 27.3: 491-514.

Bosch-Domènech, A., Montalvo, J. G., Nagel, R., & Satorra, A. (2010). A finite mixture analysis of beauty-contest data using generalized beta distributions. *Experimental economics*, 13(4), 461-475.

Runco, M. (2013). Estimating depth of reasoning in a repeated guessing game with no feedback. *Experimental Economics*, 16(3), 402-413.

Bardsley, N., & Moffatt, P. G. (2007). The experimetrics of public goods: Inferring motivations from contributions. *Theory and Decision*, 62(2), 161-193.

## Enquiries and Registration

This course is free-of-charge for members of our Institution Partners, however there is a cost involved for other participants.

For further details please contact the NCER Administration Coordinator:

Angela Fletcher

Queensland University of Technology

Email: a.fletcher@qut.edu.au