• Table of Contents
    • Abstract
    • Keywords
    • Article
      • I Markets and market experiments
      • II Brief interpretive history of the development of experimental economics
      • III The functions of market experiments in microeconomic analysis
      • IV Classifying the application of experimental methods
    • See Also
    • Bibliography
    • How to cite this article

experimental methods in economics

Vernon L. Smith
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
Alternate versions available: 1987 Edition, 1987 Edition
Back to top

Abstract

In the mid-20th century economists became involved in the design and conduct of laboratory experiments to examine propositions implied by economic theory. This development brought new standards of rigour to the data gathering process. This article gives an account of the author's experiment in 1956 to test the hypothesis that the competitive market process yields welfare improving (and, under certain limiting ideal conditions, welfare maximizing) outcomes, provides an interpretive history of the development of experimental economics, discusses the functions of market experiments in microeconomic analysis, and classifies the application of experimental methods.
Back to top

Keywords

Back to top

Article

Back to top

How to cite this article

Smith, Vernon L. "experimental methods in economics." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 22 July 2014 <http://www.dictionaryofeconomics.com/article?id=pde2008_E000186> doi:10.1057/9780230226203.0531

Download Citation:

as RIS | as text | as CSV | as BibTex