Introduction to Experimental Economics

Early on the second day, we had a lecture on ‘Experimental Economics’, taught by Professor Geng Son. In this lecture Prof. Geng led us through a number of Economic scenarios or experiments.  One of these experiments was Elsburgs 1961 experiment, involving a number of coloured balls, ending with each person in the class effectively having to decide on a safe or risky option. These experiments helped us understand the behavioural and psychological Impacts within the financial industry and why one individual would choose to risk buying a stock over an alternative more conservative stock. The lecture gave a lot of thought as to why people make the decisions they do in life regarding their money. Additionally, there was significant discussion regarding game theory and how that plays a role in every day life.

Prof. Geng Son also talked about the economics labs which were present in Xiamen university. These labs contained a number of computers on which people could simulate a number of experiments simultaneously.

Prof. Geng Son provided a very interactive and hands-on class throughout, including tasking us to write our answers on a pieces of papers, which he would then collect and discuss. Overall one of the better lectures with good content and a informative teacher.

Zou zou,
Ollie