Previously the Manager of Economic Design at the Victorian Department of Sustainability and Environment, Nicola works with the CMD to test and refine market designs in the experimental economics laboratory through to pilot implementation.
She uses economic experiments to test market designs before piloting them in the real world. In the lab, subjects are told their values for items being exchanged. At the end of the experiment subjects are paid according these values and how much they bought or sold items for in the experimental marketplace. This process enables the CMD to test markets’ performance based on the proximity of experimental results to theoretical predictions.
Electronic market places are proving increasingly advantageous throughout the world. Experiments allow the CMD to test and refine features of electronic markets to eliminate the likelihood of unwanted surprises when the market is implemented. They inform many changes, large and small, that help make participation in online markets a simple and intuitive experience.