Topic 4 Experimental Economics Flashcards
1
Q
What is experimental economics?
Recreate situations and test theories to…
A
Describe rational decision making
Predict individuals behaviour
2
Q
Note: relaxes the strict assumptions of traditional economics
A
3
Q
2 sources of data
A
Experimental data
Observational data
4
Q
Experimental data
A
Created for scientific or other controlled purposes
5
Q
Observational data
A
Product of ongoing uncontrolled processes
6
Q
3 types of experiments
A
Natural-data from events that occur naturally
Lab-artificial environment
Field-
7
Q
Problem with field experiments
A
problem as cannot assume cater is paribus, so may not be able to infer causal relationships between variables
