Policy insights

Policy Insights

Policy Insight 6: Can Markets Be Trusted?

Experimental economics opens the door to better policy design. Laboratory experiments should be used to try out proposed policy changes on a small scale before causing upheaval in the large national economy - just as wind tunnels are used in car and plane design.

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Huck, S and J Tyran (2007), Policy Insight 6: Can Markets Be Trusted?, CEPR Policy Insight No 6, CEPR Press, Paris & London. https://cepr.org/publications/policy-insight-6-can-markets-be-trusted