Introduction to Experimental Economics
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Why Do Economists Conduct Experiments?
Before we answer this question, it is necessary to define certain terms important to the study of experimental economics. Every experiment is defined by the environment, or the monetary rewards of the experiment. These are the things that motivate exchange. Another important term that experiments use is institutions which define language such as bids, offer, or acceptances as well as the rules about the exchange of information and contracts. Finally the last term is behavior which is how the participant reacts to the experiment.
