An Interview with Vernon L. Smith: 2002 Nobel Laureate in Economic Sciences and Father of Experimental Economics
University of California, Berkeley - Haas School of Business
Betty J. Simkins
Oklahoma State University - Stillwater - Department of Finance
Journal of Applied Finance, Vol. 18, Issue 2, pp. 116-123, Fall/Winter2008
The article presents an interview with Vernon L. Smith, winner of the 2002 Nobel Prize in Economic Sciences. Smith discusses his belief that behavioral and experimental economics are complementary. He comments upon optimal bidding behavior in auctions as revealed by some of his earlier work. In his view asset bubbles can be modeled, but not fully explained. He believes that an important contributor to a bubble in U.S. housing prices was a 1997 change in tax law that allowed people to retain up to $500,000 in capital gains tax-free on the sale of a home.
Keywords: Interviews, Bidding Strategies, Auctions, Economic Bubbles, Real Estate BubblesAccepted Paper Series
Date posted: July 24, 2012
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