Experimental Finance

Experimental finance is a branch of finance that uses controlled experiments to understand how people make financial decisions. Researchers simulate market environments to study behaviors such as risk-taking, investment choices, and reactions to market changes. By observing and analyzing participants' decisions in these conditions, they can uncover insights into human behavior, market dynamics, and the psychology of investing. The goal is to improve our understanding of financial markets and help design better financial tools and strategies that align with how people actually think and act when it comes to money.