The Method of Experimental Economics

There are many similarities between experimental economics and psychological research, both substantive and methodological. However, there are important differences as well. This article discusses five methodological areas where experimental economists and experimental psychologists differ: incentives, context, subject pools, deception, experimental details and data analysis. Within each topic I present the economists’ methodology and rationale and contrast it with current practice in psychology and management research. My hope is that this article will lead not only to a deeper understanding of each field’s choice of methodology, but also to practical advice for researchers toward having their work read and accepted by their colleagues in related disciplines.