subfield of economics that uses experimental methods/economic experiments to study individual and collective decision-making. By giving the researcher freedom to manipulate factors of interest, difficulties to establish causal relationships (typically present in observational data) can be overcome. Yet, the method relies on strong simplifications and abstraction.
A common feature of economic experimentstypically use (cash) incentives to study economic decision-making under controlled conditions in abstract (laboratory) or somewhat contextualised (field) settings. More is the use of monetary incentives contingent on behavior/choices in the experiment (as opposed to most psychological experiments).
