Experiments in Token Economies: A Review of the Evidence Relating to Assumptions and Implications of Economic Theory

Abstract

a controlled environment, these experiments have economic implications. Thus a survey of the empirical evidence of these experiments, as it relates to neoclassical economic theory should be of interest to economists. This is especially true in a period of time when economic analysis is being extended to subjects previously uninvestigated by economists [10; 11; 46; 47; 48], while at the same time its basic assumptions are being challenged from within the profession [20; 21; 24]. The purpose of this review is to indicate some assumptions and implications of neoclassical economic theory, along with alternative theories, that come to different conclusions, about which we have additional empirical observations on the basis of these experiments. The general areas discussed in this paper about which these experiments provide data are: (i) incentives and related assumptions about economic organization, (ii) the theory of occupational choice and (iii) the theory of consumer behavior. In general these experiments support the qualitative predictions of neoclassical economic theory. The data is strongest in its support of the neoclassical view of incentives and of occupational choice. Primarily only qualitative rather than quantitative measures were attempted in these studies, but where quantitative estimates were made, [7; 8; 52], these quantitative estimates were largely consistent with the predictions of economic theory as well. The bulk of the studies of token economies