The early development of experimental economics was an attempt by economists to test whether the solutions offered by economics were applied by subjects in the field. In its development, experiments in the laboratory are also used to formulate policies.
a. One researcher stated that actually doing experimenting in the lab for policy making is much easier than conducting experiments for theory testing. Discuss!!
b. Other researchers argue that when experiments in the lab are used for policy making, it is hoped that all existing settings in the field can be replicated in the lab. If this is not met, the experimental results cannot be used for policy formulation at all. Discuss!!