Not so long ago, a project the Pentagon has been planning was closed because of a immoral point of view; and all the great consequences which it might have brought were crushed to dust. The pentagon wanted to do a terrorist-prediction market in which experimental economics could be applied to predict the next attacks to the United States by Al-Queda Members. This was not possible, because it implied that undercover terrorist might enter the market, bet on their own terrorist actions, do the damage, and get money out of it. Terrorism prediction has not been the only way in which experimental economics can be applied. It has many applications and it involves all the markets.

A lot of big firms have been using experimental economics, developed by Vernon Smith, professor at a university, who started this new way of economics when he made experiments with his students, proving...