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(2019). Springer. by Joachim Weimann, Jeannette Brosig-KochWiesbaden, Germany, 320 pages, $74.93 (hardcover), ISBN-13: 978–3319933627
In the last ten years, the branch of economic science, called behavioral and experimental economics, has been actively developing. Since Thinking, Fast and Slow Paperback by Daniel Kahneman, and Richard Thaler's Misbehaving: The Making of Behavioral Economics Nudge: Improving Decisions about Health, Wealth, and Happiness, this area is actively developing. Experimental laboratory economic research is this paper's main topic and is a modern solution to a wide range of economic issues. The peak of such economic research was accompanied by the development of a complex methodology that improved the quality of research. It is necessary to know precisely how the issue will be examined in a laboratory and reasonable manner. The textbook is aimed at helping researchers interested in using laboratory research. The book Methods in Experimental Economics: An Introduction, written by two brilliant German scientists Joachim Weimann, and Jeannette Brosig-Koch, is of great interest. The monograph is dedicated to a common overview of experimental research methods in economics. The authors note that no special prior knowledge is required to use this book. «We have set ourselves the goal of writing a book that will help both scientists who have already gained experience in the laboratory and those who are starting to work with this method», - wrote the authors of this book (VI). The Paper consists of four chapters. The first chapter explained how normative theory with experiments and behavioral economics began to prevail in this scientific field. The second chapter covers the methodological basis. The third chapter focuses on the practical realization of experiments. The fourth chapter is dedicated to the statistical analysis of data gained in the laboratory. The book contains such chapters as the House money effect, Risk behavior in the Laboratory, the Experimenter demand effect, Reputation effect and social distance, Strategy Method versus direct response, etc. The book’s main thesis is at the heart of all experimental investigations is the ability to make observations under controlled conditions (44). According to the authors, economic theory analyzes how people make decisions. The preferences of the actors are of primary importance. In 1976, Vernon Smith introduced the concept of monetary equivalent in experimental methodology - the method of induced values. The need for certain goods contributes to the utility with a certain monetary equivalent: the ability and readiness to pay for this product. Therefore, standard neoclassical economic theory means that public goods cannot be offered privately. Economists often assume that the desire for more income prevails over other factors. Nevertheless, from a psychological point of view, behavioral economics faces other moments of influence that contribute to people making distorted decisions because they can be distracted from the main tasks. The author should have given more analysis to the phenomenon of the social contract - this is a theory that appeared in the Age of Enlightenment and referred to the identification of the legality of the state's power over the individual. If it is possible to introduce into the public mood ideas about morality and the importance for the public good of the idea of a small cost to everyone for improved air quality, then over time, society can accept it especially when it comes to generations of children who can live in the best climate.