Laboratory experiments with human subjects now provide crucial data in most fields of economics and there has been a tremendous upsurge in interest in this relatively new field of economics. This textbook introduces the student to the world of experimental economics.
Contributors including Reinhard Selten and Axel Leijonhufvud that sketch the history of experimental economics before moving on to describe how to set up an economics experiment and to survey selected applications and the latest methods. This user-friendly book demonstrates how students can use the lessons to conduct original research.
With their freeflowing, discursive yet precise style, Friedman and Cassar have created a book that is essential to students of experimental economics across the world. On account of its authoritative content, Economics Lab will also find its way on to the bookshelves of leading researchers in all fields of economics.
Part 1: Introductions 1. An Intensive Course in Experimental Economics 2. The Trento Summer School 3. Economists Go to the Laboratory: Who, What, When and Why? Part 2: Laboratory Methods 4. First Principles: Induced Value Theory 5. The Art of Experimental Design 6. Dialogues with the Data 7. Do it: Running a Laboratory Session 8. Finish What You Started: Project Management Part 3: Applications 9. Markets 10. Auctions 11. Oligopoly 12. Games 13. Learning Direction Theory and Impulse Balance Equilibrium 14. Imitation Equilibrium 15. Choice Anomalies 16. Institutional Engineering Part 4: Projects 17. An Asset Market Experiment 18. Bifurcation in a Stock Market Experiment 19. Price Instability and Search 20. Animal-Spirits Cycles 21. The Restart Effect 22. Integrative Negotiation 23. Culture from Scratch