Experimental Methods in (Neuro)Economics

by Vernon Smith
June 4, 2001

This entry will be limited primarily to a discussion of the use of experimental methods in the study of decision behavior by humans in strategic interactions. This subfield within experimental economics also includes neuroeconomics (a term originated by Kevin McCabe). (For a discussion of experimental methods in market economics see the entry “Markets, Institutions and Experiments”).

For cognitive scientists it will be particularly useful to distinguish three complex selfordering systems central to understanding the human enterprise.

1. The internal order of the mind (Hayek, 1952, calls it the Sensory Order which began as an essay “What is Mind?”) interpreted here as the entire neurobiological structure of the human organism.
2. The external order of social exchange between minds. (McCabe and Smith, 2001).
3. The extended order of cooperation through markets and other cultural institutions
   (Hayek, 1988).

Our concern here is with the first two, while the companion entry referenced above deals with the third.

Full Text of "Experimental Methods in (Neuro)Economics" (PDF, 65 KB) You must have Adobe Acrobat installed to view this document.

Printer Friendly Version | Send to a Friend