One constraint we face as economists is not being able to observe all the relevant variables required to test our theories or make policy prescriptions. Laboratory techniques allow us to convert many variables (such as beliefs) that are unobservable in the field into observables. This article...

The main purpose of rational choice theory is to lay out in clear and transparent terms what conditions are necessary and/or sufficient for the validity of statements about consistent human behavior. Strong criteria for rationality are ‘wrong’ if understood as a positive...