Overview
Experimental economics is a vital field that combines economic theory with experimental methods to understand how individuals make decisions in various economic contexts. By conducting controlled experiments, researchers can observe behaviors that traditional economic models may not fully explain, s...
Key Terms
Example: Randomization helps eliminate bias in experimental results.
Example: The control group helps assess the effect of the treatment.
Example: Confirmation bias leads people to favor information that confirms their existing beliefs.
Example: Financial incentives can encourage people to save more.
Example: Clean air is a public good that benefits everyone.
Example: Auction design is a key aspect of market design.
Related Topics
Behavioral Finance
Study of how psychological influences affect financial behaviors.
intermediateGame Theory
Mathematical study of strategic interactions among rational decision-makers.
advancedPublic Policy Evaluation
Assessment of the effectiveness of government policies using experimental methods.
intermediateKey Concepts
Behavioral EconomicsGame TheoryMarket DesignIncentives