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Setting the scene with 'firms' and 'workers'

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  • Fredrik Hansen

Abstract

Two articles contributing to the experimental research about incomplete contracts are analyzed in this paper. Especially interesting is their use of the terms 'firms' and 'workers', although the experiments were performed on students only given information that they were participating in general market experiments. A framework based on Maki (2004) is used both to emphasize what we aim to explain, and by which we explain. Also the concepts of internal and external validity are important. By showing that the articles refer to an external validity which they are not capable of achieving at this moment, their use of 'firms' and 'workers' is found to be questionable. But the two articles are still good examples of experimental research about incomplete contracts.

Suggested Citation

  • Fredrik Hansen, 2007. "Setting the scene with 'firms' and 'workers'," Journal of Economic Methodology, Taylor & Francis Journals, vol. 14(3), pages 339-352.
  • Handle: RePEc:taf:jecmet:v:14:y:2007:i:3:p:339-352
    DOI: 10.1080/13501780701562526
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    References listed on IDEAS

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    1. Martin Brown & Armin Falk & Ernst Fehr, "undated". "Contractual Incompleteness and the Nature of Market Interactions," IEW - Working Papers 038, Institute for Empirical Research in Economics - University of Zurich.
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    Cited by:

    1. Ohana, Marc, 2009. "La réciprocité sur le marché du travail : les limites du laboratoire," L'Actualité Economique, Société Canadienne de Science Economique, vol. 85(2), pages 239-256, juin.

    More about this item

    Keywords

    economic methodology; experimental economics; external validity; labor experiments; B41; C90;

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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