Title: Imperfect Perception and Stochastic Choice in Experiments (Elements in Behavioural and Experimental Economics)
Publisher: Cambridge University Press
Publication Date: 2024
Language: English
ISBN 10: 1009048694
ISBN 13: 9781009048699
Binding: Soft cover
Condition: New

About this title

Synopsis

The branch of psychology that studies how physical objects are perceived by subjects is known as psychophysics. A feature of the experimental design is that the experimenter presents objectively measurable objects that are imperfectly perceived by subjects. The responses are stochastic in that a subject might respond differently in otherwise identical situations. These stochastic choices can be compared to the objectively measurable properties. This Element offers a brief introduction to the topic, explains how psychophysics insights are already present in economics, and describes experimental techniques with the goal that they are useful in the design of economics experiments. Noise is a ubiquitous feature of experimental economics and there is a large strand of economics literature that carefully considers the noise. However, the authors view the psychophysics experimental techniques as uniquely suited to helping experimental economists uncover what is hiding in the noise.

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