When some economists criticize experiments as lacking "external validity", what is it that they are referring to? Your answer should contain at least two separate points; one regarding the nature of the stakes and the other relating to the use of student participants.

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The Answer is When economists criticize experiments as lacking "external validity", they are referring to the fact that the results of the experiment may not be applicable to real-world situations. This is because the nature of the stakes in an experiment may not accurately reflect the high-stakes decisions that individuals and businesses make in the real world. For example, in a laboratory setting, participants may not have the same level of investment or consequences as they would in a real financial decision.

Additionally, the use of student participants in experiments can also affect the external validity of the results. Students may not represent the broader population, and their behavior and decision-making processes may not be reflective of those in the real world. This can lead to a lack of generalizability in the findings of the experiment, as the results may not be applicable to a wider range of individuals or businesses.

When Some Economists Criticize Experiments as Lacking "External Validity", What