Behavioral Economics For Dummies®

Chapter 19

Ten (Or So) Experiments in Behavioral Economics

In This Chapter

Looking at key behavioral economics experiments

Seeing the proof behind what behavioral economists claim

Many of the claims of behavioral economists are drawn from economic experiments and economic psychology experiments. In this chapter, I highlight some of the most important experiments that have informed behavioral economists.

Most economic experiments are done in college or university classroom settings with students. So, the results of these experiments often reflect how students (relatively young and well-educated people) behave in particular environments designed to reflect certain real-world circumstances. College students aren’t representative of the wider population, which raises concerns among many economists about the validity of many experimental results. Even so, the results of these experiments are thought to provide some insight on how the wider population may behave under similar circumstances. Some of these experiments are now being replicated and refined, with more representative subjects outside the college or university setting, even in non-Western and less-developed economies.

The Ultimatum ...