Experimental Economics Methods in the Large Undergraduate Classroom: Practical Considerations

Since its emergence around mid-century, laboratory experimental economics has been widely recognized for introducing a new empirical research methodology rooted in the direct observation of human behavior. It is less well known that research in experimental economics has always gone hand in hand with its use as a pedagogical tool. A notable very early example is Harvard University professor E. H. Chamberlin’s classroom experiments with an “imperfect market” (1948). In the mid-1950s, Vernon Smith (1962) began conducting the first double-auction market experiments in his classes at Purdue University. Over the years, it has been increasingly common to find experimental researchers investigating alternative methods for integrating simple decision-making exercises into their classrooms, based on their experience with research experiments. The objective was to create vehicles for “hands on” experiential learning and thus make economic theory more