Behavioural Economics 1.2 Types of experiment

Question 1

What are the main types of experiments in economics according to Harrison and List?

Answer 1

Harrison & List (2004) classify experiments into four types:

Conventional Lab Experiment

Standard subject pool (e.g. students)
Abstract framing
Imposed rules
Artefactual Field Experiment

Same as lab, but with a non-standard subject pool (e.g. general or targeted population)
📝 User note: Used when generalisability of lab results is questioned.
Framed Field Experiment

Same as artefactual, but with contextual framing in:
Commodity
Task
Information set
📝 User note: Participants know they’re doing something real, e.g. giving to charity.
Natural Field Experiment

Same as framed, but participants don’t know they’re in an experiment.
Behaviour is fully natural (e.g. real-world charity solicitation).
📖 Source: Harrison, G. W., & List, J. A. (2004). Field experiments. Journal of Economic Literature, 42(4), 1009–1055.

Question 2

What are the key steps in designing a lab experiment?

Answer 2

Question 3

Advantages of lab experiments

Answer 3

Question 4

Definition and features of field experiments

Answer 4

Field experiments are conducted in natural settings and aim to study behaviour in real-world contexts.

Key Features:

Use randomisation, like lab experiments.
Conducted in natural environments (e.g. homes, schools, markets).
Participants often don’t know they are in an experiment.
Provide a balance between:
The control of lab experiments.
The realism of naturally occurring data.
Applications:

Charity
Development economics
Financial behaviour
Health economics
📖 Recommended reading:
List, J. A. (2011). Why economists should conduct field experiments and 14 tips for pulling one off. Journal of Economic Perspectives, 25(3), 3–16.

Question 5

What are some key examples of field experiments in economics?

Answer 5

arly field experiments were often social policy trials:

UK electricity pricing experiments (1966–72)
Swedish unemployment experiment (1968)
📖 Source: Levitt & List (2009)

Examples testing economic theory:

Duflo, Dupas & Kremer (2011)

Topic: Streaming (“tracking”) in Kenyan schools
Finding: Peer effects and teacher incentives impact learning.

Landry et al. (2006)

Topic: Door-to-door fundraising
Finding: Donation method (lottery vs. voluntary) affects amount donated.

Labour market discrimination

Method: Natural field experiment (e.g. CV audit study)
Treatments: Gender, qualifications
Goal: Distinguish between:
Taste-based discrimination (Becker, 1957): employers sacrifice profit to avoid hiring certain groups.
Statistical discrimination: exclusion based on perceived productivity.
These examples show how field experiments can test real-world economic behaviour and policy relevance.

These examples show how field experiments can test real-world economic behaviour and policy relevance.

Question 6

Lab vs. field experiments: key differences

Answer 6