Cambridge-INET Institute Conversations in Economics

Professor Shachar Kariv: Confronting theory with experimental data and vice versa


Listen Later

In combining theory and experiments, we should have two objectives in mind. The first objective is to confront the theory with some data to see whether the theory is at all consistent with the behavior exhibited in the laboratory. Clearly, there is much that can be learned about the theory from the data, quite apart from any notion of "testing" the theory. We hope to learn whether the theory is useful in interpreting the data, of course, but we also expect to find out what extensions of the theory are required to make it compatible with the data. The second objective is to confront the data with the theory. A theoretical framework is needed for two reasons. First, the data set generated by experiments can be extremely rich and the behavior predicted by the theory is sometimes complex and subtle. Any attempt to explain rich datasets in purely "behavioral" terms would require a large number ad hoc assumptions, which would render the "explanation" rather uninformative. The second reason is that, without a theoretical framework, it is quite impossible to draw general conclusions that go beyond the particular setting of the experiment.
Conversations in Economics is a series of interviews with Cambridge-INET Institute visitors. These distinguished economists explore some of today's most challenging economic questions and introduce viewers to their exciting research. http://www.inet.econ.cam.ac.uk/video-series/
...more
View all episodesView all episodes
Download on the App Store

Cambridge-INET Institute Conversations in EconomicsBy Cambridge University

  • 5
  • 5
  • 5
  • 5
  • 5

5

1 ratings


More shows like Cambridge-INET Institute Conversations in Economics

View all
Public Lectures from the Faculty of Law, University of Cambridge by Faculty of Law, University of Cambridge

Public Lectures from the Faculty of Law, University of Cambridge

5 Listeners

LCIL International Law Centre Podcast by LCIL, University of Cambridge

LCIL International Law Centre Podcast

13 Listeners

Philosophy by Cambridge University

Philosophy

16 Listeners

Social and Developmental Psychology Seminar Series by Cambridge University

Social and Developmental Psychology Seminar Series

0 Listeners

Faculty of Classics by Cambridge University

Faculty of Classics

5 Listeners

Medieval History Seminars by Cambridge University

Medieval History Seminars

15 Listeners

Madingley Lectures by Cambridge University

Madingley Lectures

1 Listeners

Games – Darwin College Lecture Series 2016 by Cambridge University

Games – Darwin College Lecture Series 2016

0 Listeners

PEDAL Centre by Cambridge University

PEDAL Centre

1 Listeners

Cambridge Creative Writing Centre - Crime and Thriller by Cambridgeice

Cambridge Creative Writing Centre - Crime and Thriller

13 Listeners