Pioneers in Finance: Vernon Smith Interview

Journal of Applied Finance (Formerly Financial Practice and Education), Vol. 18, No. 2, 2008

Posted: 18 Jun 2009

See all articles by Vernon L. Smith

Vernon L. Smith

Chapman University - Economic Science Institute; Chapman University School of Law

Terrance Odean

University of California, Berkeley - Haas School of Business

Betty J. Simkins

Oklahoma State University - Stillwater - Department of Finance

Date Written: June 18, 2009

Abstract

On January 9th 2009, Terry Odean and Betty Simkins interviewed Vernon L. Smith for this issue of the Journal of Applied Finance. Vernon Smith is widely regarded as the "father of experimental economics" for his pathbreaking work in this area. After decades of research, the once novel field of ‘experimental economics’ has become a recognized strand of the literature that contributes to our understanding of market mechanisms and more broadly, to the field of behavioral financial economics.

In 2002, Vernon Smith was a co-recipient for the Nobel Prize in Economics "for having established laboratory experiments as a tool in empirical economic analysis, especially in the study of alternative market mechanisms". In this interview, Vernon Smith shares his insights on markets. Among the issues he addresses are:

* the relation between experimental economics and behavioral economics, * the insights his research on speculative bubbles in experimental markets provides for understanding the recent bubble is US residential real estate, and * his view as to reasons for the dramatic rise and fall in oil prices last year.

Keywords: Experimental economics, behavioral finance, Nobel Laureate

Suggested Citation

Smith, Vernon L. and Odean, Terrance and Simkins, Betty J., Pioneers in Finance: Vernon Smith Interview (June 18, 2009). Journal of Applied Finance (Formerly Financial Practice and Education), Vol. 18, No. 2, 2008. Available at SSRN: https://ssrn.com/abstract=1421990

Vernon L. Smith

Chapman University - Economic Science Institute ( email )

One University Dr.
Orange, CA 92866
United States
714-628-2830 (Phone)

Chapman University School of Law ( email )

One University Drive
Orange, CA 92866-1099
United States

Terrance Odean

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States
510-642-6767 (Phone)
510-666-2561 (Fax)

HOME PAGE: http://www.haas.berkeley.edu/faculty/odean.html

Betty J. Simkins (Contact Author)

Oklahoma State University - Stillwater - Department of Finance ( email )

336 Business Building
Stillwater, OK 74078-4011
United States
405-744-8625 (Phone)
405-744-5180 (Fax)

HOME PAGE: http://spears.okstate.edu/~simkins

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