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Experimental economics – application of experimental methods to study economic questions.
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Noncooperative game theory has been adopted as a fundamental aspect of experimental economics, behavioral economics, information economics, industrial organization, and political economy.
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Behavioral game theory, invented by Colin Camerer, analyzes interactive strategic decisions and behavior using the methods of game theory, experimental economics, and experimental psychology.
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Some economists see a fundamental schism between experimental economics and behavioral economics, but prominent behavioral and experimental economists tend to share techniques and approaches in answering common questions.
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Abstract. • C.F. Bastable, 1987. "experimental methods in economics", i, The New Palgrave: A Dictionary of Economics, v. 2, pp. 241. • Vernon L. Smith, 2008a. "experimental methods in economics", The New Palgrave Dictionary of Economics, 2nd Edition.
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Traditional economists are skeptical of the experimental and survey-based techniques that behavioral economics uses extensively.
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Psychology differs from the other social sciences (e.g. anthropology, economics, political science, and sociology) due to its focus on experimentation at the scale of the individual, or individuals in small groups as opposed to large groups, institutions or societies.
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Experimental and game-theory methods have been developed to model and test theories of information economics, including potential public-policy applications such as mechanism design to elicit information-sharing and otherwise welfare-enhancing behavior.
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Vernon Smith, drawing on Chamberlin's work, but also modifying it in key respects, conducted pioneering economics experiments on the convergence of prices and quantities to their theoretical competitive equilibrium values in experimental markets.
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In 1932, Belle Lowe, then the professor of Food and Nutrition at Iowa State College, published a book titled Experimental Cookery: From The Chemical And Physical Standpoint which became a standard textbook for home economics courses across the United States.
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