Experimental economics is the application of experimental methods to study economic questions. Data collected in experiments are used to estimate effect size, test the validity of economic theories, and illuminate market mechanisms. Economic experiments usually use cash to motivate subjects, in order to mimic real-world incentives. Experiments are used to help understand how and why markets and other exchange systems function as they do.
A fundamental aspect of the subject is design of experiments. Experiments may be conducted in the field or in laboratory settings, whether of individual or group behavior.
Variants of the subject outside such formal confines include natural and quasi-natural experiments.
Read more about Experimental Economics: Experimental Topics
Other articles related to "experimental economics, economics, economic":
... consistent with observations of behavior in three standard economics experiments Dictator game – The subject chooses how a reward should be split between himself and another subject ... Other research in experimental economics addresses risk aversion in decision making and the comparison of inequality measures to subjective judgments on perceived inequalities ...
... Main articles Econometrics and Experimental economics Economic theories are frequently tested empirically, largely through the use of econometrics using economic data ... common to the physical sciences are difficult and uncommon in economics, and instead broad data is observationally studied this type of testing is typically regarded as less rigorous than ... However, the field of experimental economics is growing, and increasing use is being made of natural experiments ...
... in Economics from the University of California, Berkeley and a Ph.D ... in Economics from the University of California, Los Angeles ... He is currently Professor of economics at the University of Pittsburgh where he serves as Director of the Pittsburgh Experimental Economics, a leading center of ...
... Specifically, economics experiments are often challenged because of concerns about their "internal validity" and "external validity", for example, that they are not applicable models for many types of economic ...
Famous quotes containing the words economics and/or experimental:
“Religion and art spring from the same root and are close kin. Economics and art are strangers.”
—Willa Cather (18761947)
“Philosophers of science constantly discuss theories and representation of reality, but say almost nothing about experiment, technology, or the use of knowledge to alter the world. This is odd, because experimental method used to be just another name for scientific method.... I hope [to] initiate a Back-to-Bacon movement, in which we attend more seriously to experimental science. Experimentation has a life of its own.”
—Ian Hacking (b. 1936)