An Interview with Vernon L. Smith: 2002 Nobel Laureate in Economic Sciences and Father of Experimental Economics
Journal of Applied Finance, Vol. 18, Issue 2, pp. 116-123, Fall/Winter2008
Posted: 24 Jul 2012
Date Written: 2008
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 Bubbles
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