SYSTEM DYNAMICS AND LABORATORY EXPERIMENTS Santiago Arango Aramburo, PhD Universidad Nacional de Colombia, Medellín, Colombia Centro de Complejidad – CeiBA Carrera 80 No. 65 – 223, oficina M8A-211, Escuela de Sistemas Phone/fax: +57 (4) 4255371 / +57 (4) 2341002 saarango@unalmed.edu.co Jaime Andrés Castañeda Acevedo, MSc (c) Universidad Nacional de Colombia, Medellín, Colombia Centro de Complejidad – CeiBA Carrera 82 A No. 21 – 159 Phone/fax: +57 (4) 3430773 / +57 (4) 3430773 jacasta2@unalmed.edu.co Yris Olaya Morales, PhD Universidad Nacional de Colombia, Medellín, Colombia Centro de Complejidad – CeiBA Carrera 80 No. 65 – 223, oficina M8A-209, Escuela de Sistemas Phone: +57 (4) 4255352 yoyalam@unalmed.edu.co ABSTRACT This paper is a review of research on the application of laboratory methods to System Dynamics (SD). Although laboratory methods have been used in psychology for many years, our review focuses on the laboratory experiments developed from the experimental economics field and on their contributions to SD and the management sciences. In particular, we examine the use of experimental methods for estimating the decisions used by SD models, and the intersection of SD and laboratory experiments in theory testing and theory building. We also discuss methodological issues that experiments in SD should address to improve the value of experimental results and we remark the main findings of the reviewed works. Keywords: System Dynamics, Laboratory Experiments, Dynamic Decision-Making, Bounded Rationality. 1. INTRODUCTION In economics, a laboratory experiment is defined as a formal method that allows researchers to test economic theories or generate new hypothesis in a controlled