Internal and External Validity in Experimental Economics
Experimental economics is subject to criticism with
regards to frequently discussed the trade-off between internal and
external validity requirements, which seems to be critically flawed.
This paper evaluates incompatibility of trade-off condition and
condition of internal validity as a prerequisite for external validity. In
addition, it outlines the imprecise concept of artificiality, which is
found to be rather improving the external validity and seems to
strengthen the illusory status of external versus internal validity
tension. Internal validity is further analyzed with regards to Duhem-
Quine problem, where unpredictability argument is significantly
weakened trough application of inductivism within the illustrative
hypothetical-deductive model. Our discussion partially weakens
critical arguments related to the robustness of results in experimental
economics, if the perfectly controlled experimental environment is
secured.
[1] K.Binmore, Playing Fair. MIT Press,1994.
[2] K. Binmore, A. Shaked, “Experimental Economics: Where
Next?”Journal of Economic Behavior and Organization, 2010, 73 (1),
87-100.
[3] D.S.Brookshire, L. Coursey,D.W. Schulze, “The External Validity of
Experimental Economics Techniques: Analysis of Demand
Behaviour,”Economic Inquiry, 1987, 25 (2), 239-250.
[4] D.T. Campbell,“Factors Relevant to the Validity of Experiments in
Social Settings, “Psychological Bulletin, 1957, 54(4), 297-312.
[5] N. Cartwright, “Hunting Causes and Using Them,”
Cambridge:University of Cambridge Press, 2007. [6] T.D. Cook, D.T. Campbell, “Quasi-experimentation: Design and
Analysis Issues for Field Settings,” Boston, Houghton Mifflin Co.,
1979.
[7] J. Cross, Some Comments on the Papers by KagelabdBattalio and by
Smith. In Kmenta, J. And Ramsey, J., eds., “Evaluation of Econometric
Models,” New York University Press, 1980.
[8] D. Davis, C. Holt,“Experimental Economics,” Princeton University
Press, ISBN: 9780691043173, 1993.
[9] E. Fehr, A. Falk, “Why Labour Market Experiments?”Labour
Economics, 2003,10 (4), 399-406.
[10] M. Friedman,“The Methodology of Positive Economics.” in Essays in
Positive Economics, edited by Milton Friedman. Chicago: University
of Chicago Press, 1953.
[11] D. Friedman, D. S. Sunder,“Experimental Methods. A Primer for
Economists,” Cambridge: Cambridge University Press, ISBN 0-521-
45682-7, 1994.
[12] F. Guala,“The Methodology of Experimental Economics,” Cambridge:
Cambridge University Press, ISBN 0-521-85340-0, 2005.
[13] F. Heukelom,“Origin and Interpretation of Internal and External Validity
in Economics,” Nijmegen Centre for Economics, NiCE Working Paper
09-111, 2009.
[14] R.B. Hogarth,“The Challenge of Representativeness Design in
Psychology and Economics,”Journal of Economic Methodology, 2005,
12 (2),253-263.
[15] J. Kessler, L. Vesterlund,“External Validity of Laboratory Experiments,“
In preparation for The Methods of Modern Experimental Economics,
editors Guillaume Frechette and Andrew Schotter, Oxford University
Press, 2010.
[16] R. Lipsey,“An Introduction to Positive Economics,” 5th ed., London,
Weidenfeld and Nicolson, ISBN 0297775979, 1979.
[17] J.W. Lucas,“Theory-Testing, Generalization, and the Problem of
External Validity,” Sociological Theory, 2003, 21(3), 236-253.
[18] C. Plott, “Will Economics Become an Experimental Science,” Southern
Economic Journal, 1991, 57 (4), 901-19.
[19] C.R.Plott, “Industrial Organization Theory and Experimental
Economics,” Journal of Economic Literature, 1982, 20 (4), 1485-1527.
[20] K.R. Popper, “Conjectures and Refutations,” London: Routledge, 1963.
[21] P.A.Samuelson, W.D. Nordhaus,“Principles of Economics,” 12th ed.
1985.
[22] V.L.Smith,“Experimental Economics: Reply.”American Economic
Review, 1985, 75 (1), 265-272.
[23] V.L. Smith,“Microeconomic Systems as an Experimental
Science,”American Economic Review, 1982, 72 (5), pp. 923-955.
[24] Ch.Starmer, “Experiments in Economics: Should we trust the dismal
scientists?” Journal of Economic Methodology, 1999, 6 (1), 1-30.
[25] W. Wallis, M. Friedman,“The Empirical Derivation of Indifference
Functions,” In: Studie in Mathematical Economics and Econometrics in
Memory of Henry Schults, O. Lange, F. McIntyre, T. Yntema (eds),
Chicago Press, 1942.
[1] K.Binmore, Playing Fair. MIT Press,1994.
[2] K. Binmore, A. Shaked, “Experimental Economics: Where
Next?”Journal of Economic Behavior and Organization, 2010, 73 (1),
87-100.
[3] D.S.Brookshire, L. Coursey,D.W. Schulze, “The External Validity of
Experimental Economics Techniques: Analysis of Demand
Behaviour,”Economic Inquiry, 1987, 25 (2), 239-250.
[4] D.T. Campbell,“Factors Relevant to the Validity of Experiments in
Social Settings, “Psychological Bulletin, 1957, 54(4), 297-312.
[5] N. Cartwright, “Hunting Causes and Using Them,”
Cambridge:University of Cambridge Press, 2007. [6] T.D. Cook, D.T. Campbell, “Quasi-experimentation: Design and
Analysis Issues for Field Settings,” Boston, Houghton Mifflin Co.,
1979.
[7] J. Cross, Some Comments on the Papers by KagelabdBattalio and by
Smith. In Kmenta, J. And Ramsey, J., eds., “Evaluation of Econometric
Models,” New York University Press, 1980.
[8] D. Davis, C. Holt,“Experimental Economics,” Princeton University
Press, ISBN: 9780691043173, 1993.
[9] E. Fehr, A. Falk, “Why Labour Market Experiments?”Labour
Economics, 2003,10 (4), 399-406.
[10] M. Friedman,“The Methodology of Positive Economics.” in Essays in
Positive Economics, edited by Milton Friedman. Chicago: University
of Chicago Press, 1953.
[11] D. Friedman, D. S. Sunder,“Experimental Methods. A Primer for
Economists,” Cambridge: Cambridge University Press, ISBN 0-521-
45682-7, 1994.
[12] F. Guala,“The Methodology of Experimental Economics,” Cambridge:
Cambridge University Press, ISBN 0-521-85340-0, 2005.
[13] F. Heukelom,“Origin and Interpretation of Internal and External Validity
in Economics,” Nijmegen Centre for Economics, NiCE Working Paper
09-111, 2009.
[14] R.B. Hogarth,“The Challenge of Representativeness Design in
Psychology and Economics,”Journal of Economic Methodology, 2005,
12 (2),253-263.
[15] J. Kessler, L. Vesterlund,“External Validity of Laboratory Experiments,“
In preparation for The Methods of Modern Experimental Economics,
editors Guillaume Frechette and Andrew Schotter, Oxford University
Press, 2010.
[16] R. Lipsey,“An Introduction to Positive Economics,” 5th ed., London,
Weidenfeld and Nicolson, ISBN 0297775979, 1979.
[17] J.W. Lucas,“Theory-Testing, Generalization, and the Problem of
External Validity,” Sociological Theory, 2003, 21(3), 236-253.
[18] C. Plott, “Will Economics Become an Experimental Science,” Southern
Economic Journal, 1991, 57 (4), 901-19.
[19] C.R.Plott, “Industrial Organization Theory and Experimental
Economics,” Journal of Economic Literature, 1982, 20 (4), 1485-1527.
[20] K.R. Popper, “Conjectures and Refutations,” London: Routledge, 1963.
[21] P.A.Samuelson, W.D. Nordhaus,“Principles of Economics,” 12th ed.
1985.
[22] V.L.Smith,“Experimental Economics: Reply.”American Economic
Review, 1985, 75 (1), 265-272.
[23] V.L. Smith,“Microeconomic Systems as an Experimental
Science,”American Economic Review, 1982, 72 (5), pp. 923-955.
[24] Ch.Starmer, “Experiments in Economics: Should we trust the dismal
scientists?” Journal of Economic Methodology, 1999, 6 (1), 1-30.
[25] W. Wallis, M. Friedman,“The Empirical Derivation of Indifference
Functions,” In: Studie in Mathematical Economics and Econometrics in
Memory of Henry Schults, O. Lange, F. McIntyre, T. Yntema (eds),
Chicago Press, 1942.
@article{"International Journal of Business, Human and Social Sciences:70279", author = "H. Chytilová and R. Maialeh", title = "Internal and External Validity in Experimental Economics", abstract = "Experimental economics is subject to criticism with
regards to frequently discussed the trade-off between internal and
external validity requirements, which seems to be critically flawed.
This paper evaluates incompatibility of trade-off condition and
condition of internal validity as a prerequisite for external validity. In
addition, it outlines the imprecise concept of artificiality, which is
found to be rather improving the external validity and seems to
strengthen the illusory status of external versus internal validity
tension. Internal validity is further analyzed with regards to Duhem-
Quine problem, where unpredictability argument is significantly
weakened trough application of inductivism within the illustrative
hypothetical-deductive model. Our discussion partially weakens
critical arguments related to the robustness of results in experimental
economics, if the perfectly controlled experimental environment is
secured. ", keywords = "Duhem-Quine Problem, external validity,
inductivism, internal validity.", volume = "9", number = "6", pages = "1944-8", }
