By its nature, empirical approaches to hypothesis -testing in research areas such as social capital, which includes the study of such elusive 'state -of -mind' phenomena as norms and informal networks, would be difficult unless ways could be found to Induce the relevant behavioral patterns In a controlled setting. This is where experiments could potentially provide a breakthrough. This paper aims to address common methodological concerns on the use of controlled laboratory experiments in economics, and to demonstrate how an experimental approach can help pin down important but elusive social I economic phenomena by presenting the design of an experiment to Induce and measure prejudice.