The Role of Experiments for the Development of Economic Theories

Klaus Schmidt ()
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Klaus Schmidt: Department of Economics, University of Munich, Ludwigstr. 28, D-80539 München(Germany)

No 252, Discussion Papers from SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich

Abstract: Economic experiments interact with economic theories in various ways. First of all they are used to test economic theories. However, they can neither confirm nor falsify them in a strict sense. They rather inform us about the range of applicability, the robustness and the predictive power of a theory. Furthermore, economic experiments discover and isolate phenomena and challenge economic theorists to explain them. Finally, many economic experiments are “material” models. They are used to analyse and predict how changes in the environment affect economic outcomes. However, they cannot offer an explanation for what we observe. This has to be provided by economic theory.

Keywords: Economic experiments; economic theories; falsification; confirmation; phenomena; models (search for similar items in EconPapers)
JEL-codes: B41 C90 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp
Date: 2009-01
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Persistent link: http://EconPapers.repec.org/RePEc:trf:wpaper:252

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