^BBSnline

Experimental Practices in Economics: A Challange for Psychologists?

Hertwig, Ralph and Ortmann, Andreas (2001) Experimental Practices in Economics: A Challange for Psychologists?.

Short Abstract:

We discuss four key variables of experimental design that tend to be realized quite differently in economics and in areas of psychology relevant to both economists and psychologists, such as judgment and decision making. On theoretical and empirical grounds, we argue that these different realizations, which concern enactment of scripts, repetition of trials, performance-based monetary payments, and the use of deception, are bound to produce divergent experimental results. Furthermore, we argue that the wider range of experimental practices in psychology reflects a lack of procedural regularity that may contribute to the variability of empirical findings. We call for more research on the consequences of particular methodological preferences and to further this goal propose a "do-it-both-ways" rule.

Long Abstract:

We discuss four key variables of experimental design that tend to be realized quite differently in economics and in areas of psychology relevant to both economists and psychologists, such as judgment and decision making. On theoretical and empirical grounds, we argue that these different realizations, which concern enactment of scripts, repetition of trials, performance-based monetary payments, and the use of deception, are bound to produce divergent experimental results. Furthermore, we argue that the wider range of experimental practices in psychology reflects a lack of procedural regularity that may contribute to the variability of empirical findings. We call for more research on the consequences of particular methodological preferences and to further this goal propose a "do-it-both-ways" rule.

Keywords:	Behavioral decision making, cognitive illusions, deception, learning, experimental economics, experimental design, experimental practices, financial incentives, role playing.
Subjects:	Psychology: Applied Cognitive Psychology Psychology: Behavioral Analysis Psychology: Cognitive Psychology Computer Science: Statistical Models
ID code:	bbs00000547
Deposited by:	Ralph Hertwig on 02 May 2001