Transformations  in
Business & Economics

ECONOMIC EXPERIMENTS IN VIRTUAL WORLD
Malgorzata Latuszynska, Anna Borawska

ABSTRACT. Nowadays, the experimental method is quite often used in different areas of economic research. In this field of study, the experiments in the laboratory are the most popular. However, this approach has its limitations. Among of them, the difficulties of creating the realistic environment for experiment seem to be the most important. Very promising forms of supporting experimental research in economic science are the interactive, virtual environment simulations called the virtual worlds. They are as close as possible to the real world. The article aims to analyse the possibilities and limitations of applying the virtual worlds in experimental economics. It explains what a virtual world is and presents the most widely recognized ones with the examples concerning the research that was has already been done with the use of such tools. On this basis, a procedure of conducting these experiments is elaborated. It is supported with the list of advantages and disadvantages of such experimental approach and a proposal for solving possible problems .

KEYWORDS: experimental economics, virtual reality.

JEL classification: A10, C63, C92.