Laboratory experiments for economic policy making

Abstract

In this paper, we assess the scope and the specific contribution of laboratory experiments for economic policy making. We review experiments which have addressed a specific problem, institution, mechanism design or tool relevant in economic policy. We have two research questions. What type of policy questions can be addressed in the laboratory? And what is the specific value added of economic experiments for policy making. The survey contains experiments on competition policy, auctions, regulated markets, and emission permits.