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From a pioneer in experimental economics, an expanded and updated edition of a textbook that brings economic experiments into the classroom

Economics is rapidly becoming a more experimental science, and the best way to convey insights from this research is to engage students in classroom simulations that motivate subsequent discussions and reading. In this expanded and updated second edition of Markets, Games, and Strategic Behavior, Charles Holt, one of the leaders in experimental economics, provides an unparalleled introduction to the study of economic behavior, organized around risky decisions, games of strategy, and economic markets that can be simulated in class. Each chapter is based on a key experiment, presented with accessible examples and just enough theory.

Featuring innovative applications from the lab and the field, the book introduces new research on a wide range of topics. Core chapters provide an introduction to the experimental analysis of markets and strategic decisions made in the shadow of risk or conflict. Instructors can then pick and choose among topics focused on bargaining, game theory, social preferences, industrial organization, public choice and voting, asset market bubbles, and auctions.

Based on decades of teaching experience, this is the perfect book for any undergraduate course in experimental economics or behavioral game theory.

New material on topics such as matching, belief elicitation, repeated games, prospect theory, probabilistic choice, macro experiments, and statistical analysis
Participatory experiments that connect behavioral theory and laboratory research
Largely self-contained chapters that can each be covered in a single class
Guidance for instructors on setting up classroom experiments, with either hand-run procedures or free online software
End-of-chapter problems, including some conceptual-design questions, with hints or partial solutions provided