External Validity of Laboratory Experiments in Economics

External Validity of Laboratory Experiments in Economics

Introduction

The experiments from the laboratory can be used to tackle different economic questions. A good example is its application as the determinant of whether there is consistency of behavior when dealing with assumptions and different theory predictions and how various institutions and mechanisms affect economic agents’ behavior. The experimental laboratory has proven crucial to productive dialogue and economics (Kesller and Vesterlund, 2015). In most cases, results acquired from these laboratory experiments are published in leading economics journals. However, some authors have questioned what people can learn from these studies…