Laboratory Experimentation in Economics under the Microscope

Recent years have witnessed a growth of interest in experimental economics. Indeed, it has become a rather influential project. Somewhat surprisingly, although it is a project unqeustionably concerned with method, it appears to have generated very little sustained methodological discussion. Moreover, as Smith observes th ereactions towards the experimental project often depend on particular results, giving rise to mixed reactions by its proponents and its skeptics. Theobjective of this paper is to clarify and illuminate issues regarding experimental economics and hence dissolve some of the perplexity economists often exhibit.