L
Published online by Cambridge University Press: 04 August 2017
Summary
Laboratory experiment: used since the 1960s in the field of experimental economics (and, in more recent years, in experimental law and economics), to test theories and hypotheses. A laboratory experiment is conducted by an experimenter in a controlled setting, such as a classroom or computer lab, where the economic decisions of the participants (often college students recruited by the experimenter) are observed under a variety of conditions. The acceptance of laboratory experiments by mainstream scholarship necessitated the establishment of a well-defined set of methods and protocols for carrying out experimental work. For example, salience and dominance have become essential requirements for the validity of a laboratory experiment. The most common method used to guarantee salience is to incentivize study participants by using a monetary payoff. The payoffs are affected by the participant’s choices and actions in the experiment. The concept of salience distinguishes economic experiments from other forms of experiments used in the social sciences. Although experimental methods are now widely accepted for testing theories and policies, some concerns remain about their use. One such concern is that the typical group of subjects used in experiments may not be representative of the relevant population. Representativeness may be further undermined by a self-selection problem. Another common criticism is that it is not possible to replicate several important real-life conditions in the context of a laboratory. See also salience and dominance in experiments, experimental law and economics, natural experiment, field experiment, and calibration.
- Type
- Chapter
- Information
- The Language of Law and EconomicsA Dictionary, pp. 164 - 172Publisher: Cambridge University PressPrint publication year: 2013