Economics in the Laboratory
- (pp. 113-131)
AbstractThe questions addressed in this paper include: What is a laboratory experiment? What are the reasons why economists conduct such experiments? What have we learned? Among the many findings of experiments are included: institutions (the rules of exchange) matter; optimization in markets is not achieved by conscious calculation; less information is sometimes better; common information is not sufficient to yield common 'knowledge' or expectations; underrevelation is compatible with efficiency; and fairness is a matter of tastes or expectations. Also discussed is the methodological role of experiments in contributing to our knowledge of how things work.
CitationSmith, Vernon L. 1994. "Economics in the Laboratory." Journal of Economic Perspectives, 8 (1): 113-131. DOI: 10.1257/jep.8.1.113
- C90 Design of Experiments: General
- D00 Microeconomics: General