A Primer on Economic Experiments

Chapter 2 — A Primer on Economic Experiments What makes an experiment “economic,” and what distinguishes a lab from a field? This chapter maps the full experimental spectrum—from conventional laboratory experiments to artefactual, framed, and natural field experiments—explaining what parameters each type recovers and when to use them. The defining feature of economic experiments is that the researcher knows and controls the assignment mechanism. Viewed as complements rather than substitutes, lab and field approaches together offer a blend of control and realism unmatched by any single method.

1. The use of experiments in economics has steadily grown over the past several decades, with both lab and field experiments now playing an important role in causal inference.
2. Economic experiments are unique in that the assignment mechanism is known and controlled by the researcher.
3. Field experiments, which can be categorized into three types (artefactual, framed, and natural), represent a unique bridge between laboratory and naturally occurring data.
4. Each type of economic experiment has strengths and weaknesses. Viewed as complements, they provide a blend of control and realism that is unparalleled, allowing social scientists a unique opportunity to provide fresh insights.