Experimental economics: Methods, problems and promise

The purpose of this paper is to discuss the growing importance of experimentation in economic analysis. We present a variety of economic issues that have been explored with laboratory techniques. We also address some common objections to experimentation, as well as some of the principal lessons that have been learned.

Experimental Economics

This is the first comprehensive treatment of laboratory experiments designed to evaluate economic propositions under carefully controlled conditions. While it acknowledges that laboratory experiments are no panacea, it argues cogently for their effectiveness in selected situations. Covering methodological and procedural issues as well as theory, Experimental Economics is not only a textbook but also a useful introduction to laboratory methods for professional economists. The emphasis is on organizing and evaluating existing results. The book can be used as an anchoring device for a course at either the graduate or advanced undergraduate level. Applications include financial market experiments, oligopoly price competition, auctions, bargaining, provision of public goods, experimental games, and decision making under uncertainty. The book also contains instructions for a variety of laboratory experiments.laboratory experiments, financial markets, price competition, auctions, bargaining, games, decision making, uncertainty