Abstract
For many decades, economists have lamented the constraints on performing experiments in economics. However, with the birth of experimental economics this perception has changed. This field has developed considerably over the years. Now results from experiments are taken seriously. The experimental literature evolved in three directions: market experiments, game experiments and individual-decision making experiments. Over the years however, experimental methodology has been applied to more complex environments investigating macroeconomic issues and international economics. This paper provides a review of the experimental economics, its ingredients, its promises and skepticism. Further, we provide a review of the experiments that has been carried out in international economics.
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