Field Experiments: A Bridge Between Lab and Naturally-Occurring Data

Abstract

Laboratory experiments have been used extensively in economics in the past several decades to lend both positive and normative insights into a myriad of important economic issues. This study discusses a related approach that has increasingly grown in prominence of late—field experiments. I argue that field experiments serve as a useful bridge between data generated in the lab and empirical studies using naturally-occurring data. In discussing this relationship, I highlight that field experiments can yield important insights into economic theory and provide useful guidance to policymakers. I also draw attention to an important methodological contribution of field experiments: they provide an empirical account of behavioral principles that are shared across different domains. In this regard, at odds with conventional wisdom, I argue that representativeness of the environment, rather than representative of the sampled population, is the most crucial variable in determining generalizability of results for a large class of experimental laboratory games.

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