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UA sets standard in economic research

Scott Andrew Taras Arizona Daily Wildcat Marketing senior Janet Clum participates in an economics experiment Friday afternoon at McClelland Hall. Clum and other students are being paid for the experiment.

About 15 students were ushered into a little room on the first floor of McClelland Hall, seeking some extra spending money and providing one of the few sources of economics research in the nation.

They sat quietly around a large table scanning each other for a familiar face as staff scurried around preparing for a new experiment.

After a quick sign-in period and the distribution of five dollar bills to each person, the students moved into a larger room that was lined with rows of computers.

The room sat quietly except for the electronic hum of the computers while the students waited for instructions.

After a fast run down of the experiment, participants busied themselves in a computer game simulating market concepts.

For decades, University of Arizona students have depended on economics experiments at the Economic Science Laboratory for a quick source of income.

During that time, economists at the UA have depended on the students to test theories that pertain to the world of business.

The experiments are laid out in a computer game format.

The UA is home to Vernon Smith, who is known as the father of experimental economics. The university is also one of the few schools that does these experiments, said research scholar Mark Olson.

The UA has developed disciplines in different economic theories including experimental economics, economics systems design (which designs ways to implement problem solving techniques to economic problems) and neuroeconomics (which studies the reaction of the brain to market decisions.)

"We're one of the top respected labs in the world regarding economics," said economics professor and research scholar Kevin McCabe.

To maintain a steady flow of subjects, the program pays UA students to participate in the program.

Janet Clum, a marketing senior, said she participates in the experiments to have a better understanding of economics, but the money is a big help.

"I'd do it everyday if I could," said economics junior Michael R. Drobnicki.

Drobnicki said he liked the opportunity to make more money, but he also said he wanted to learn more about the purpose of the experiments.

Payments are confidential, but Olson said he has seen a payoff into the hundreds during a multiple-day experiment. However, Olson said such payoffs are rare.

"We try to make sure the payoffs are good enough to come back and have them think about their decision," Olson said.

Experiments are open to all UA students and some are open to faculty and staff.

Participation in experiments is guaranteed, even though experiments tend to be overbooked in order to insure the necessary number of participants.

Any participants that are bumped are guaranteed a spot in their next experiment, McCabe said.

The program receives grants from the National Science Foundation and the Federal Communications Commission.

The information from the experiments goes into various business journals. Although the program does occasional consulting work, almost all of the information gathered is for public use, Olson said.

Olson and McCabe agreed that the Economic Science Laboratory adds credibility to the university. Smith is also being considered for a Nobel Prize, the researchers said.

"I came here specifically to do this," Olson said. "I hope it's here forever."

Students who wish to participate in the experiments should visit the Economic Science Laboratory's website at http://www.econlab.arizona.edu.