Building a Market: From Personal to Impersonal Exchange

Free Enterprise: Values in Action Conference Series, 2005-2006

MORAL MARKETS: THE CRITICAL ROLE OF VALUES IN THE ECONOMY, Paul J. Zak, ed., Princeton University Press, 2007

20 Pages Posted: 14 Sep 2006

See all articles by Erik O. Kimbrough

Erik O. Kimbrough

Chapman University - The George L. Argyros School of Business & Economics

Vernon L. Smith

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

Bart J. Wilson

Chapman University - Smith Institute for Political Economy and Philosophy; Chapman University - Economic Science Institute (ESI); Chapman University, The Dale E. Fowler School of Law

Abstract

Adam Smith identified two key components in the wealth creation process of human societies: exchange and specialization. More than two centuries later relatively little is understood about the underlying process by which people build exchange systems and discover comparative advantage. In this chapter we report on a pilot experiment that explores the social mainsprings that give rise to the market. Specifically, using cash-motivated participants we compare and contrast the personal, social interactions within a village with those of the participants engaged in long-distance trade among a system of interconnected virtual villages.

Suggested Citation

Kimbrough, Erik O. and Smith, Vernon L. and Wilson, Bart J., Building a Market: From Personal to Impersonal Exchange. Free Enterprise: Values in Action Conference Series, 2005-2006; MORAL MARKETS: THE CRITICAL ROLE OF VALUES IN THE ECONOMY, Paul J. Zak, ed., Princeton University Press, 2007. Available at SSRN: https://ssrn.com/abstract=927808

Erik O. Kimbrough

Chapman University - The George L. Argyros School of Business & Economics ( email )

One University Dr
Orange, CA 92866
United States

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

Bart J. Wilson (Contact Author)

Chapman University - Smith Institute for Political Economy and Philosophy ( email )

One University Drive
Orange, CA 92866
United States
(714) 628-7306 (Phone)

HOME PAGE: http://www1.chapman.edu/~bjwilson/

Chapman University - Economic Science Institute (ESI) ( email )

One University Drive
Orange, CA 92866
United States
(714) 628-7306 (Phone)

Chapman University, The Dale E. Fowler School of Law ( email )

One University Drive
Orange, CA 92866-1099
United States
(714) 628-7306 (Phone)

HOME PAGE: http://www1.chapman.edu/~bjwilson/

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