The External validity in economic experiments

Abstract

One of the most important questions regarding experimental economics is the external validity of laboratory experiments. This paper goes through a study that tests the generalizability of a Dictator Game as a laboratory analogue for a naturally occurring/ndecision-making context of teacher absenteeism. Because lab and naturally-occurring environments systematically differ we then discuss other factors that might strongly affect the choices that individuals make. We conclude that the dichotomy drawn between lab/nexperiments and data collected from natural settings is a false one. A combination of the two would provide deeper and better insights than either separately.