There are two main methodological approaches in carrying out an economic experiment.

1) Maunual or Non-computerised method (pen-and-paper): Until the mid-1970s virtually all economic experiments were conducted using this method which allows for a great deal of freedom in changing the experimental design, treatments, parameters and procedures. This type of experiment can be conducted in a classroom or in the field.

2) Computerised method: An increasing proportion of experimental studies today are conducted on computer networks. This is because in spite of their high cost, computers confer distinct advantages. The experimenters can exercise tighter control on the flow of information as compared to a room full of expressive faces, eye contact, body language and voice inflections in the pen-an-paper experiment. Computerised experiment also produces fast and accurate data and fast and individualised communication between the experimenter and the participant as well as among the participants. Thus, the possibility of contaminating the results through other factors is attenuated.

The software which has been used by a large number of experimental studies is called 'z-Tree' or Zurich Toolbox for Readymade Economic Experiments. The software is very user-friendly and allows experimenters without programming knowledge to develop new experiment by using existing templates. Further information on z-Tree can be found at http://www.iew.uzh.ch/ztree/index.php.