2.2 economic experiments

• Economic experiments help analyze cause-and-effect relationships between variables.
• economics often deals with complex issues where controlled experiments are not possible, experiments can be used in certain areas of economic research
• experimental economics is the field which designs and implements experiments to study economic questions.
• randomized trials: are where participants are randomly assigned to different groups to control for external factors.
• in randomised trials:

  participants may be split into treatment and control groups, where one group receives a treatment and the other group does not.
• Laboratory experiments: These are controlled experiments conducted in a lab setting where participants solve economic problems using computers or simulations
• Field experiments: These take place in real-world settings where participants act in their natural environment.