Application of basic tools of experimental economy in management science

Abstract

In the times of rapid economic transformations taking place in the world markets, it is becoming more and more difficult to predict economic trends as well as people’s behaviour. In order to do so, it is more common nowadays to adopt unorthodox approach apart from using traditional methods. Undoubtedly, experimental economy is a good example of such kind of approach. The basic tool used in experimental economy is an experiment and it will be the main subject of this study. In its first part, this article explains fundamental concepts and the essence of experimental theory basing on available literary resources. The second part presents lots of specific examples showing how to use experiments both in human resources management and quality management.