ABSTRACT
This chapter provides the reader with a brief description of the experimental approach selected for an examination of the educational hypothesis. It discusses the methodological considerations of a macroeconomic experiment related to the investigation. The chapter outlines the educational hypothesis more thoroughly with regards to the examination of the effects of economic education on the potential reduction of money illusion. Experimental design partially inspired by Fehr and Tyran (2000, 2001) is based on n-player pricing game with strategic complementarity and unique equilibrium. The chapter examines determinants of nominal inertia and potential effects of economic education based on experimental design with the payoff function applied and dimensions as stated. The nominal versus real representation of payoffs together with distinction among agents with imperfect/perfect foresight enables to investigate various factors related to nominal inertia.
