Graduate Seminar Series on Experimental Research Methods
Spring/Summer 2012
Course Syllabus
Faculty Information
Professors: Dr. Bram Cadsby and Dr. Fei Song
Email: , and
Professional Webpage:
Bram:
Fei:
Course Description and Learning Objectives
This graduate seminar course focuses on the use of experimental methods in Finance, Accounting, Organizational Behaviour and Personnel Economics research. Emphasis is placed on the methodological approach developed over the last 50 years within the rapidly growing and exciting field ofExperimental Economics. We will read and discuss together some background readings. However, most of the course will involve carefully discussing and critically analyzing a small number of experimental research papers in each of the fields mentioned above. We will make no attempt to cover all of the different experimental methodologies used in management research such as those developed within Social Psychology. While valuable, they are not the principal focus of this course, which will concentrate on the methodology of Experimental Economics. Moreover, we will not cover the entire field of Experimental Economics in this course. It has become a very large field, which cannot be absorbed in one course. Rather, we will concentrate on a small number of topics that we believe are especially relevant and important for graduate students in the various subfields of management offered through the College of Management at SWUFE.
The primary goal of the course is to promote awareness of the Experimental Economics approach to testing theories and to encourage some of you to do undertake your own experimental research within your own fields of interest. As we examine together research done by others, you should begin to develop an informed perspective on how to construct an experimental design, conduct an experimental session and analyze experimental data using appropriate statistical tools.
Those who successfully complete the course will be able to:
understand the various steps required to carry out an experimental research project;
understand the concepts of correlation, causality and chance in an experimental context;
identify strengths and weaknesses of the experimental approach in different contexts;
find the literature resources needed as background for a project;
select an appropriate methodology to conduct an experimental research project;
defend their choice of methodology;
know how to formulate implications of research results for managers and policy-makers;
produce a well developed research proposal.
Learning Materials
Seminar readings will be assigned and made accessible to students well in advance of the course. Students are responsible for obtaining these readings and studying them thoroughly prior to each seminar. We suggest that you read a substantial number of the readings in advance of the beginning of the course since there will be a lot to read if you leave everything for the short four-week period during which the course will be conducted. Since students come from different academic backgrounds and are majoring in different areas, we include papers from several different fields. Papers from a field other than your own may present special challenges. Reading such papers in advance can help you identify concepts that may pose particular difficulties for you prior to the beginning of the course. This will better enable you to tackle any such challenges in a timely manner with the help of your fellow students and the instructors.
Pedagogy and Learning Approach
This course is designed as an advanced research seminar course. Accordingly, active student participation is of vital importance. To participate actively, it is imperative that you read thoroughly the assigned readings before each class session. In addition, you must think about them, reflect on them and question them. Every reading deserves your respect, but not your uncritical respect. A creative response to an article, however critical, should be a far greater compliment to a serious researcher than lavish praise and uncritical parroting of his/her conclusions. The quality of the discussion in each seminar will be a direct result of the extent to which students all come to the seminar meetings well prepared to discuss the various topics.
Various in-class exercises and activities as well as some short between-class assignments will give the students opportunities to develop their own research expertise. The process is developmental. You will not be an “instant expert” having read one chapter/research paper or completed one assignment. You will not even be an expert after completing the course. However, you should have a firm foundation on which to build your expertise.
In general, each seminar will last for three hours and consist of the following components: 1) an introductory overview by the professor on key concepts of the topic of the seminar and any relevant background readings as needed; 2) the presentation of a paper by a student assigned to that paper in advance; 3) class discussion and reflections on the research paper presented; 4) the presentation of a second paper by a student assigned to that paper; and 5) discussion and reflections on the second paper. Student presentations should be between 30 minutes and one hour in length including time for clarifying questions and discussion.
During the first seminar, you will participate in some experiments and we will then discuss the results together. Our discussion will focus on some of the fundamental theoretical and methodological issues related to experimental research. The remainder of the course will involve student seminar presentations of research from the weekly reading list. In preparation for each week's class, you will be expected to read a few assigned articles or book chapters. From seminar 2 to 11, each student will be responsible for one paper presentation.
In addition to the presentation, you will be responsible for submitting 1-2 burning questions that relate to the assigned papers in that seminar. (The paper presenter does not have to submit such questions on the paper s/he is presenting.) The burning questions should focus on: a) the seminar topic and its theoretical and empirical application; b) the research questions or hypotheses investigated in the articles; c) the validity of the research methodology; d) the appropriateness and thoroughness of the data analysis and results; and e) implications of the current research and directions for future research. Please submit your burning questions at latest by 6:00 p.m. the evening before the seminar in which the paper is to be presented. You will be evaluated for this component as outlined below.
Seminar Schedule and Readings: Please see details on page 6 and 7.
Weekly Office Hours / Individual Student Research Consultations (12 hours)
- Wed May 2: 2 to 4pm
- Mon May 7: 2 to 4pm
- Wed May 9: 2 to 4pm
- Mon May 14: 2 to 4pm
- Wed May16: 2 to 4pm
- Mon May 21: 2 to 4pm
These office hours will be adjusted if necessary to fit with student schedules. We will also be available by appointment. For small matters, you may contact us by email. If you do so, please put the words “SWUFE Student” in the subject line of your email. For larger matters, please see one of us in person.
Learning Evaluation
Research Paper Presentation25%
Class Participation25%
Burning Questions10%
Essay (Research Proposal or Critical Literature Review) 40%
EVALUATION DETAILS
Research Paper Presentation
As you read the available research in an area, you need to maintain a critical perspective, evaluating the study on its own merits and in comparison with other studies on the same or a similar problem with which you may be familiar. Maintaining a critical perspective does not imply that you must identify a major flaw or weakness in every study you read. However, it does mean that you should remember that each piece of research has strengths and weaknesses. The approach outlined below can help guide you in your critical analysis of a research study:
A.Conceptualization
- What is the major problem or issue being investigated?
- How clearly are the major concepts defined or explained?
B.Theoretical Framework and Hypotheses
- Is there a clearly stated research question?
- Are there hypotheses? Are they clearly stated?
- Are the relationships among the main variables explicit and reasonable?
- Are the hypotheses stated in a way that makes them testable?
C.Research Design
- What is the research design?
- Does the research design adequately control for extraneous variables that are not under study, but may affect the behaviour of the subjects?
- Could the design be improved? How?
- Are the concepts clearly and reasonably represented by the variables employed? For categorical variables, is the choice of categories reasonable?
- Is the population appropriate for the research question being studied? Is the manner in which the sample was recruited from the target population specified and appropriate? Can the results reasonably be generalized on the basis of this sample and to what population?
D.Results and discussion
- Are the data appropriate for the study?
- Are the statistical techniques appropriate and adequately described?
- Are the control variables adequately handled in the data analysis? Are there other control variables that were not considered but should have been?
- Are the conclusions of the study consistent with the results of the statistical analyses?
- Are alternative conclusions that are consistent with the data discussed and accounted for?
- Are the theoretical and practical implications of the results adequately discussed?
- Are the limitations of the study noted?
E.Summary
- What is your overall assessment of the adequacy of the study for exploring the research problem?
- What is your overall assessment of the contribution of the study to this area of research?
Class Participation
We expect you to contribute your unique skills, experiences, and perspectives to the course. You must prepare for and actively participate in each class session and constructively discuss thereadings. Sometimes you may need to complete short exercises prior to attending class. If you foresee problems with regard to attendance and/or preparation of assignments, you must inform the instructor prior to the class in person or by email. Do not undertake this course if you plan to be absent more than two times; missing part of a class constitutes an absence.
You should come to class well prepared, having read the material assigned. You are encouraged to ask questions, make comments, and participate in class discussions. Students who are late or absent are not properly participating in class, regardless of how involved they may be when present. An effective participant:
- Is a good listener;
- Makes points relevant to the ongoing discussion;
- Makes comments that add to our understanding of the reading or article;
- Is willing to challenge ideas that are being expressed;
- Integrates material from past classes and other courses.
Burning Questions
Please see above for detailed information and instructions.
Research Proposal
Each student must complete a major term project, which will be in the form of a research proposal.
Your proposal should include the following:
1. A brief statement of the research issue you intend to examine.
2. A discussion of why the research question is important and a summary of how your research would provide a contribution.
3. A brief literature review and some development of relevant theory from the literature.
4. A statement of a hypothesis (or hypotheses) and/or a theoretical model.
5. A description of the research design you propose to use.
6. Statement and justification of the proposed research methods to be used for addressing the question.
7. A specific research plan based on the research question and your research design.
8. Your plan of data analysis.
A typed, double-spaced report (maximum 15 pages) is required for the term project.
You must also prepare and submit a two-page summary of their intended research proposal by 9:00 a.m. on Monday Dec. 13. This will give you an opportunity to receive feedback from the instructor as you prepare your proposal. The two-page summary should include the research topic, purpose of the study, the study hypotheses, and a brief summary of the experimental design. On Tuesday, Dec. 14, we will conduct a special workshop from 1:00 to 3:00 during which each student will spend roughly three minutes to explain their proposal. This will give other students the opportunity to provide feedback on each proposal. If you are having trouble developing a research proposal, please talk to one of the instructors for guidance before Dec. 13.
Seminar Schedule and Reading List
All seminars meet from 9:00 to 12:00. The total amount of seminar time is 36 hours. Readings marked with * are background readings. The content of these readings will be discussed in class. However, they will not be assigned for presentation by students.
Seminar #1(Wed, May 2) Introduction: How do Economists Construct Experiments?
*Camerer, C., Behavioral Game Theory, Chapter 1 including appendices.
*Holt, C., Markets, Games, & Strategic Behavior, Chapters 1–3.
*Friedman, D. and Sunder, S., Experimental Methods: A Primer for Economists, Chapters 1–3.
Seminar #2(Fri, May 4) Experimental/Behavioural Management: Trust, Culture and Organization
*Holt, C., Markets, Games, & Strategic Behavior, Chapter 13.
1. Song, F., “Trust and reciprocity behavior and behavioral forecasts: Differing dynamics between individuals and between group-representatives,” Games and Economic Behavior, 62, (2008), 675–694.
2. Buchan, N., Johnson, E., and Croson, R., “Let’s get personal: An international examination of the influence of communication, culture and social distance on other regarding preferences,” Journal of Economic Behavior and Organization, 60, (2007), 373–398.
Seminar #3 (Sun, May 6, make-up class for holiday Monday class) Interdisciplinary studies on Compensation Research 1: The Power of Incentives
3. Gneezy, U., and Rustichini, A. "Pay Enough or Don't Pay At All," Quarterly Journal of Economics (2000), 791–810.
4. Ariely, D., Gneezy, U., Loewenstein, G. & Mazar, N., “Large stakes and big mistakes,” Review of Economic Studies, 76, 2, (2009), 451–469.
Seminar #4 (Mon, May 7) Interdisciplinary studies on Compensation Research 2: Sorting versus Incentive Effects and Peer Pressure
5. Cadsby, C.B., Song, F. and Tapon, F. “Sorting and Incentive Effects of Pay-for-Performance: An Experimental Investigation” Academy of Management Journal, 50, (2007), 387–405.
6. Falk, A. and Ichino, A., 2003. “Clean Evidence on Peer Effects”, Journal of Labor Economics, 24, 1, (2006), 39–57.
Seminar #5 (Wed, May 9) Interdisciplinary studies on Compensation Research 3: Status, Feedback and Compensation
7. Cadsby, C.B., Engle-Warnick, J., Fang, T., and Song, F. 2010. “Psychological Incentives, Financial Incentives, and Risk Attitudes in Tournaments: An Artefactual Field Experiment,” Working paper.
8. Charness, G., Masclet, D., Villeval, M.C., “Competitive Preferences and Status as an Incentive: Experimental Evidence,” (2010), Working Paper.
Seminar #6 (Fri May 11) Interdisciplinary studies on Compensation Research 4: Cheating and Compensation
9. Schweitzer, M., Ordóñez, L. and Douma, B., “Goal Setting as a Motivator of Unethical Behavior,” Academy of Management Journal, 47, (2004), 422–435.
10. Cadsby, C.B., Song, F. and Tapon, F. "Are You Paying Your Employees to Cheat? An Experimental Investigation," The B.E. Journal of Economic Analysis & Policy, 10, 1, (Contributions), (2010) Article 35. Available at
Seminar #7 (Mon May14)Experimental/Behavioral Finance/Accounting: Free-riding, Auditing, and Corporate Tender Offers
*Holt, C., Markets, Games, & Strategic Behavior, Chapter 14.
11. Kachelmeier, S. and M. Shehata, “Internal Auditing and Voluntary Cooperation in Firms: A Cross-Cultural Experiment,” The Accounting Review, 72 (1997), 407–431.
Student Paper Proposal Workshop: to be schedule in Week 3.
Seminar #8 (Wed May16) Competition and Behavior
12. Niederle, M., and Vesterlun, L.,“Do Women Shy Away from Competition? Do Men Compete Too Much?” Quarterly Journal of Economics, 122(3), 1067-1100.
13. Cadsby, C.B., Servatka, M., Song, F., “How Competitive are Professional Women: A Tale of Identity Conflict”, Working paper.
Seminar #9 (Fri May 18) Interdisciplinary studies on Compensation Research 5: Lab and Field
14. Hossain, T. and List, J., “The Behavioralist Visits the Factory: Increasing Productivity using Simple Framing Manipulations,” (2009), NBER Working Paper 15623.
15. Charness, G. and Kuhn, P.J., “Lab Labor: What Can Labor Economists Learn from the Lab?” (2010), NBER Working Paper Series, 15913.
Seminar #10 (Mon May 21)Experimental/Behavioral Finance: Financial Markets 1
*Holt, C., Markets, Games, & Strategic Behavior, Chapters 2 and 11.
16. Forsythe, R., Palfrey, T. and Plott, C., “Asset Evaluation in an Experimental Market,” Econometrica, 50, (1982), 537–567.
17. Cadsby, C.B., Frank, M. and Maksimovic, V., “Pooling, Separating and Semi-Separating Equilibria in Financial Markets: Some Experimental Evidence,” Review of Financial Studies, 3 (1990), 315–342.
Seminar #11 (Wed May 23)Experimental/Behavioral Accounting: Tax Compliance
18. Alm, J., McClelland, G.H. and Schulze, W.D., “Why do People Pay Taxes?” Journal of Public Economics, 48 (1992), 21–38.
19. Cadsby, C.B., Maynes, E. and Trivedi, V.U., “Tax Compliance and Authority at Home and in the Lab: A New Experimental Approach,” Experimental Economics, 9, 4, (2006), 343–359.
Seminar #12(Fri May 25) Conclusion
20. Croson, R. and Gächter, S., “The Science of Experimental Economics,” Journal of Economic Behavior and Organization, 73, 1, (2010), 121–131.
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