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

See all articles by Terrance Odean

Terrance Odean

University of California, Berkeley - Haas School of Business

Betty J. Simkins

Oklahoma State University - Stillwater - Department of Finance

Date Written: 2008

Abstract

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

Suggested Citation

Odean, Terrance and Simkins, Betty J., An Interview with Vernon L. Smith: 2002 Nobel Laureate in Economic Sciences and Father of Experimental Economics (2008). Journal of Applied Finance, Vol. 18, Issue 2, pp. 116-123, Fall/Winter2008. Available at SSRN: https://ssrn.com/abstract=1652829

Terrance Odean (Contact Author)

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

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

Register to save articles to
your library

Register

Paper statistics

Abstract Views
288
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information