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Why use experiments in teaching economics[edit]
They help students to understand an otherwise abstract model. In the double auction experiment they experience, for example, how demand and supply drive the market towards equilibrium. It's learning by doing.To show that economic theory works (for instance, in a Bertrand game). This is important because students or the general public are often too sceptical about the use of mathematical analysis in economics.To show that economic theory does not work (for instance, in an ultimatum game). This quickly leads to questions on the current frontier of our science.An experiment can make it easier for students to grasp a threshold concept like Nash equilibrium.