Editing Behavioral economics (section)

=== Experimental economics ===
{{Main|Experimental economics}}
Experimental economics is the application of [[Experiment|experimental methods]], including [[statistical]], [[econometric]], and [[computational economics|computational]],<ref>{{cite journal | last1 = Roth | first1 = Alvin E. | author-link = Alvin E. Roth | year = 2002 | title = The Economist as Engineer: Game Theory, Experimentation, and Computation as Tools for Design Economics | url = http://kuznets.fas.harvard.edu/~aroth/papers/engineer.pdf | journal = Econometrica | volume = 70 | issue = 4 | pages = 1341–1378 | doi = 10.1111/1468-0262.00335 | access-date = 2018-05-11 | archive-url = https://web.archive.org/web/20120112073316/http://kuznets.fas.harvard.edu/~aroth/papers/engineer.pdf | archive-date = 2012-01-12 | url-status = dead }}</ref> to study economic questions. [[Economic data|Data]] collected in experiments are used to estimate [[effect size]], test the validity of economic theories, and illuminate market mechanisms. Economic experiments usually use cash to motivate subjects, in order to mimic real-world incentives. Experiments are used to help understand how and why markets and other exchange systems function as they do. Experimental economics have also expanded to understand institutions and the law (experimental law and economics).<ref>{{cite journal | last1 = See | author-link2 = Kristoffel Grechenig | last2 = Grechenig | first2 = K. | last3 = Nicklisch | first3 = A. | last4 = Thöni | first4 = C. | year = 2010 | title = Punishment despite reasonable doubt—a public goods experiment with sanctions under uncertainty | url = https://ssrn.com/abstract=1586775 | journal = Journal of Empirical Legal Studies | volume = 7 | issue = 4| pages = 847–867 | doi = 10.1111/j.1740-1461.2010.01197.x| s2cid = 41945226 }}</ref>

A fundamental aspect of the subject is [[design of experiments]]. Experiments may be conducted in the [[Field experiments|field]] or in laboratory settings, whether of [[Experimental psychology|individual]] or [[Social psychology|group]] behavior.<ref>{{Multiref2
|1=[[Vernon L. Smith]], 2008a. "experimental methods in economics," ''[[The New Palgrave Dictionary of Economics]]'', 2nd Edition, [http://www.dictionaryofeconomics.com/article?id=pde2008_E000186&q=Experimental%20economics&topicid=&result_number=2 Abstract.]
|2=_____, 2008b. "experimental economics," ''The New Palgrave Dictionary of Economics'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_E000277&q=experimental%20&topicid=&result_number=2 Abstract.]
|3=Relevant subcategories are found at the ''Journal of Economic Literature'' classification codes at [[JEL classification codes#Mathematical and quantitative methods JEL: C Subcategories|JEL: C9]].
}}</ref>

Variants of the subject outside such formal confines include [[natural experiment|natural]] and [[quasi-natural experiment]]s.<ref>J. DiNardo,  2008.  "natural experiments and quasi-natural experiments," ''The New Palgrave Dictionary of Economics'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_N000142&edition=current&q Abstract.]</ref>