on the autonomy of experiments in economics.pptVIP

On the Autonomy of Experiments in Economics Martin Jones School of Social Sciences, University of Dundee Autonomous Research Programmes Will argue that experiments can be used to independently investigate phenomena. There is no requirement to test a particular theory. There is no requirement to externally validate using field studies. Preliminaries Aim of experimentation is to discover causal relationships. Use of controls to isolate causes. Causation not explicit in economics but implicit in e.g. consumer theory, rational choice theory etc. Causes in experiments often linked to subject attitudes. Taxonomy of Experiments Theory testing experiments; e.g. tests of EU, Cumulative Prospect Theory etc. Domesticated System experiments (Harré 2003) e.g. market based tests of “Winner’s Curse” Causal Control Experiments (CCEs) e.g. event- splitting effects (Starmer 2000) Note: latter two not devoid of theoretical concerns- simply not theory testing. Instruments Instruments in an experiment enhance and constrain knowledge gained (c.f. Hacking 1983). Not necessarily physical- can be experimental procedures (e.g. binary lottery mechanism) Problem with instruments- an experimental effect is produced jointly by behaviour and instruments. An effect may be an artefact of the instruments. Manipulation Reality of phenomenon ensured by manipulation. Biology- microscopes (Hacking 1983); Economics- equitable division in Ultimatum games (Camerer 2003). Manipulation involving different instruments and tests of instruments ensures independence of phenomenon. With multiple treatments and experiments one can ensure the reality and independence of phenomena- especially CCEs. External Validity Guala (2005) Experiments act as a screening device for theories. External validity assured by Field Studies. This obviously works for “Domesticated System” type experiments. May work for theory- testing experiments External Validity Guala’s framework does not work for CCEs CCEs disrupt nat