Experiments: Why, How, and A Users Guide for Producers as well as Consumers

This chapter is intended as an introduction to laboratory experiments, when to use, how to evaluate them, why they matter and what are the pitfalls when designing them. I hope that users as well as consumers will find Sections that broaden their views. I start with when an economist might want to run an experiment. I then discuss basic lessons when designing experiments. I introduce a language to start a systematic description of tools we have when designing experiments to show the importance or role of a new model or force in explaining behavior. The penultimate chapter provides an advanced toolkit for running experiments. I end this chapter with my views on pre-registration, pre-analysis plans and the need for replications, robustness tests and extensions.