Market Experimentation

Market experimentation refers to conducting tests in real-world economic settings to observe how consumers and markets behave under different conditions. In experimental and behavioral economics, researchers create controlled environments or scenarios to see how changes, such as pricing, product placement, or incentives, influence people's choices and actions. By analyzing these interactions, economists gain insights into why people make certain decisions and how markets function, ultimately helping businesses and policymakers design better strategies and understand human behavior more effectively.