Economic Experiments

Economic experiments are research tools used to test theories about how individuals and markets behave under different conditions. Researchers create controlled scenarios, often involving games or simulations, where participants make decisions about spending, saving, or investing. By observing the results, economists gain insights into human behavior, decision-making processes, and the effects of incentives. These experiments help inform policies, improve business strategies, and enhance our understanding of economic dynamics in real-world situations. Essentially, they provide a way to study economic interactions in a structured environment.