The Virtues of Lab Experiments

Physical lab experiments have played an instrumental role in sculpting the history of experimental economics, facilitating controlled information conditions, efficient monetary inducements, and exclusive advantages via immediate human interaction and engaging experiences. These unique benefits render in-person lab experiments essential for the future of experimental economics, complementing the growth of online experiments and the emerging AI revolution. We characterize the environments in which it seems particularly important to conduct lab-in-the-lab experiments. Overall, the lab benefits culminate in a comprehensive research procedure that produces precise and enlightening outcomes, ultimately enriching the domain of experimental economics, and potentially extending benefits to the broader realm of social science.