The Department of Economics is the home to Scotland's first experimental economics laboratory: The Scottish Experimental Economics Laboratory (SEEL).
This state-of-the-art experimental lab has been the focus of academic excellence, and has been used to enhance our understanding of how markets work and how individuals make decisions. The facility has enabled the Business School to attract a group of internationally recognised scholars who use experimental methods to further our understanding of economic theory and its applications to diverse areas such as development economics, public economics, and the design of markets. With its prominent academic presence it further supports the Department of Economics’ strong link to HERU where experimental methods have been used to determine incentives and outcomes in health care provision.
Laboratory experiments have increasingly become important to formulate economic policy in recent years. They were key to designing, for example, the UK 3G telecom licence auction of 2000, which raised over £22billion for the British Government. They have also allowed economists to test the behavioural implications of a variety of economic theories — from abstract concepts in game theory to the performance of market institutions. Experiments can also generate priceless data on how individuals respond to the incentives produced by markets and other economic mechanisms. This facility generates such research.