Experimental Game Theory

Experimental Game Theory is a branch of economics that studies how people make decisions in strategic situations, where the outcome depends on the choices of others. Researchers create controlled games, often in a lab setting, to observe how individuals and groups behave under various rules and incentives. By analyzing these behaviors, we gain insights into trust, cooperation, competition, and negotiation in real life. This field helps bridge the gap between theoretical models and actual human behavior, providing a clearer understanding of economic interactions and decision-making processes in social contexts.