Virtual field experiments for a digital economy: A new research methodology for exploring an information economy

Many researchers are concerned about the appropriateness of traditional research approaches and methodologies in the analysis of a digital economy. Using the Experimental Digital Economy (EDE), a new technology infrastructure that we have developed for a digital economy, we propose a new research methodology, a virtual field experiment, which makes it feasible and effective to test research hypotheses with the desired level of experimental controls and to probe successful business strategies in a real business world. Three summaries of research on a digital economy, like the efficiency of a digital market, the effectiveness of digital markets (posted-price markets and auctions), and the impact of quality certifications, address the implications of virtual field experiments.