By Alessandra Cassar, Dan Friedman
Experimental Economics is a self-discipline that makes an attempt to provide monetary idea more impregnable medical foundations than it has probably had long ago. This outstanding new publication will introduce scholars to this very important box.
Read or Download Economics Lab: An Intensive Course in Experimental Economics (Routledge Advances in Experimental and Computable Economics) PDF
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Additional resources for Economics Lab: An Intensive Course in Experimental Economics (Routledge Advances in Experimental and Computable Economics)
External validity is a special case of this principle: regularities observed in laboratory (or field) experiments can be expected in similar situations in the naturally occurring world. Induction relies on existing theory to suggest which conditions are relevant and what represents a substantial change. It also relies on empirical work to keep the theory up to date and to test the suggestions, directly or indirectly. The point is that an honest skeptic of external validity bears the burden of guessing what makes the lab environment substantially different than the real world.
Many people dislike data analysis, and think of it as complicated and not very enlightening. In this chapter, we will try to get you to think of it as a conversation, where you encourage the data to reveal its secrets. Do not think of yourself as an inquisitor prepared to “torture the data until they confess”; you will not learn anything new that way. Think of yourself rather as an analyst in the tradition of Rogers (1995), giving the data the opportunity to tell its own story and to offer its opinion on interesting questions, always insisting on honesty and clarity.
Maintain the privacy of subjects’ actions and payoffs, and your experimental goals. Subjects’ innate preferences may have rank-sensitive components (malevolent or benevolent) that compromise dominance. Never deceive or lie to your subjects in any way. Aside from morality, a scientific reason is that you lose salience and dominance once subjects suspect that the instructions are not on the level. This can also create problems for other experimental economists, and they will resent it. Papers that use deception generally get a bad reception at economics seminars and from economics journal referees.
Economics Lab: An Intensive Course in Experimental Economics (Routledge Advances in Experimental and Computable Economics) by Alessandra Cassar, Dan Friedman