Experimental and behavioural economics
Experimental and behavioural economics are relatively new areas, which have grown strongly in recent years. Actions and behaviour of individuals are observed under different set ups and conditions, in an attempt to analyse the implications of such actions and behaviour for economic development and growth.
Across the world, experiments have been used to design, understand, and test policy implications, including electricity market deregulation, auctions for biodiversity, and aqua-culture. Participants in these experiments simulate the behaviour of people in everyday bargaining situations, in organisations and in the market at large.
Experimental economics are also increasingly being used to examine exactly how morale and self-motivation are crucial for the growth of productivity and how intangible institutions, such as trust, are imperative for success of market networks and organisations in the global competitive environment.
During the last decade, there has been an exponential increase in the application of experimental methods in Development Economics. These take the form of artefactual field experiments which examine behaviour using similar rules and procedures as in a laboratory but employ a field-based and diverse subject pool.
Examples of development research by MonLEE affiliates include:
- Risk-Taking Behaviour in the Wake of Natural Disasters
- Behavioural Impacts of China's One-Child Policy
- Understanding Corruption and Risk-Coping Behaviour Following Natural Disasters in Bangladesh
- Religion, Minority Status and Trust
- Choosing to be trained: Behavioural restrictions on participation decisions
Few other Australian institutions can boast such an integrated approach to research in development economics.