The principal findings of experimental economics are that impersonal exchange in markets converges in repeated interaction to the equilibrium states implied by economic theory, under information conditions far weaker than specified in the theory. In personal, social, and economic exchange, as studied in two-person games, cooperation exceeds the prediction of traditional game theory. This book relates these two findings to field studies and applications and integrates them with the main themes of the Scottish Enlightenment and with the thoughts of F. (...) A. Hayek. (shrink)

While neo-classical analysis works well for studying impersonal exchange in markets, it fails to explain why people conduct themselves the way they do in their personal relationships with family, neighbors, and friends. In Humanomics, Nobel Prize-winning economist Vernon L. Smith and his long-time co-author Bart J. Wilson bring their study of economics full circle by returning to the founder of modern economics, Adam Smith. Sometime in the last 250 years, economists lost sight of the full range of (...) human feeling, thinking, and knowing in everyday life. Smith and Wilson show how Adam Smith's model of sociality can re-humanize twenty-first century economics by undergirding it with sentiments, fellow feeling, and a sense of propriety - the stuff of which human relationships are built. Integrating insights from The Theory of Moral Sentiments and the Wealth of Nations into contemporary empirical analysis, this book shapes economic betterment as a science of human beings. (shrink)

Professor Vernon L. Smith is a major creator of the new discipline of experimental economics. This collection of his papers from 1962 to 1990 surveys key developments in the field from early attempts to study economic behaviour in now classic double oral auction markets through recent studies of industrial organization and decision making. Topics covered include monopoly and oligopoly, supply and demand theory under posted pricing, uniform pricing, double continuous auction, and sealed bid-offer auctions; hypothetical valuation and market (...) pricing; asset price bubbles; predatory pricing; market contestability and natural monopoly; and the methodology of experimental economics. Taken together, the papers form a history of the study of economics under controlled conditions. (shrink)

ABSTRACT Asset‐market bubbles occur dependably in laboratory experiments and almost as reliably throughout economic history—yet they do not usually bring the global economy to its knees. The Crash of 2008 was caused by the bursting of a housing bubble of unusual size that was fed by a massive expansion of mortgage credit—facilitated, in turn, by the longest sustained expansionary monetary policy of the past half century. Much of this mortgage credit was extended to people with little net wealth who made (...) slender down payments, so that when the bubble burst and housing prices declined, their losses quickly exceeded their equity. These losses were transmitted to the financial system—including banks, investment banks, insurance companies, and the institutional and private investors who provided liquidity to the mortgage market through structured securities. It seems that many of these institutions became insolvent; it is certain that they became illiquid. Liquidity loss and solvency fears created a feedback cycle of diminished financing, reduced housing demand, falling housing prices, more borrower losses, and further damage to the financial system and eventually the stock market and the real economy. There are important parallels with the housing and financial‐market booms that led up to the Crash of 1929 and the Great Depression. (shrink)

This second Cambridge University Press collection of papers by Vernon L. Smith, a creator of the field of experimental economics, includes many of his primary authored and coauthored contributions on bargaining and market behavior between 1990 and 1998. The essays explore the use of laboratory experiments to test propositions derived from economics and game theory. They also investigate the relationship between experimental economics and psychology, particularly the field of evolutionary psychology, using the latter to broaden the perspective in (...) which experimental results are interpreted. The volume complements Professor Smith's earlier work by demonstrating the importance of institutional features of markets in understanding behavior and market performance. Specific themes investigated include rational choice, the notion of fairness, game theory and extensive form experimental interactions, institutions and market behavior, and the study of laboratory stock markets. (shrink)

Selfishness narrowly defined as choosing dominant outcomes independent of context is widely rejected by experimentalists. Humans live in two worlds of personal and impersonal exchange; both are manifestations of human sociality, but the emphasis on preferences rather than cultural norms of personal exchange across time too much reflects a limited economic modeling, and fails to capitalize on the fresher experimental economics message of culture and diversity.

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The rhetoric of hypothesis testing implies that game theory is not testable if a negative result is blamed on any auxiliary hypothesis such as “rewards are inadequate.” This is because either the theory is not falsifiable (since a larger payoff can be imagined, one can always conclude that payoffs were inadequate) or it has no predictive content (the appropriate payoff cannot be prespecified).

Why eschew luxury? The traditional arguments for frugality typically focus on what is good for the individual. Some see frugality as morally valuable because it tends to be associated with other virtues such as wisdom, honesty, or sincerity. Some find the natural, uncluttered, focused character of a simple lifestyle aesthetically appealing. The most common argument, though, is that simple living is the surest route – some even say the only route – to happiness.

Why eschew luxury? The traditional arguments for frugality typically focus on what is good for the individual. Some see frugality as morally valuable because it tends to be associated with other virtues such as wisdom, honesty, or sincerity. Some find the natural, uncluttered, focused character of a simple lifestyle aesthetically appealing. The most common argument, though, is that simple living is the surest route – some even say the only route – to happiness.

The study of anarchism as a philosophical, political, and social movement has burgeoned both in the academy and in the global activist community in recent years. Taking advantage of this boom in anarchist scholarship, Nathan J. Jun and Shane Wahl have compiled twenty-six cutting-edge essays on this timely topic in New Perspectives on Anarchism.

In this article, the author offers a discussion of the evidential role of the Galilean constant in the history of physics. The author argues that measurable constants help theories constrain data. Theories are engines for research, and this helps explain why the Duhem-Quine thesis does not undermine scientific practice. The author connects his argument to discussion of two famous papers in the history of economic methodology, Milton Friedman's 'Methodology of Positive Economics', which appealed to example of Galilean Law of Fall (...) in its argument; and Vernon Smith's 'Economics in the Laboratory'. While the author offers some criticism of Friedman and Smith, most of the article is a friendly reinterpretation of their insights. (shrink)

In this article, the author offers a discussion of the evidential role of the Galilean constant in the history of physics. The author argues that measurable constants help theories constrain data. Theories are engines for research, and this helps explain why the Duhem-Quine thesis does not undermine scientific practice. The author connects his argument to discussion of two famous papers in the history of economic methodology, Milton Friedman’s “Methodology of Positive Economics,” which appealed to example of Galilean Law of Fall (...) in its argument; and Vernon Smith’s “Economics in the Laboratory.” While the author offers some criticism of Friedman and Smith, most of the article is a friendly reinterpretation of their insights. (shrink)

The article aims to present the concepts of Adam Smith which are important considering the current disputes over liberalism, as well as the challenge that is the maintenance of the world’s economic order. Firstly, the article analyses the significance of the division of labour which is perceived as a fundamental premise for transitioning from small communities and face-to-face exchanges to the impersonal exchange and the expanded social order in which relations with strangers become meaningful. Secondly, the present work indicates (...) that Smith did not neglect the matter of justice when proclaiming the need for freedom. He believed that efficient functioning of the market depends on the political system and a man’s ethical system, and his criticism of interventionism was not directed against the state as an institution co-creating the social order, but against the act of granting special privileges to certain interest groups. Thirdly, the article refers to the concept of coordination described by Scottish moral philosophers and the so-called Smith Problem. In this context, the article presents arguments against the assumption that John Nash’s theory provided proof of the erroneous nature of Adam Smith’s concepts. Arguments in favour of the timelessness of the economic philosophy of the father of economics are also drawn from Vernon Smith’s experimental economy and the research of evolutionary psychologists. (shrink)

This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work is in the "public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. Scholars believe, and we concur, that this work is important enough to be (...) preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant. (shrink)

This new translation of The Upanishads is at once delightfully simple and rigorously learned, providing today's readers with an accurate, accessible rendering of the core work of ancient Indian philosophy. The Upanishads are often considered the most important literature from ancient India. Yet many academic translators fail to capture the work's philosophical and spiritual subtlety, while others convey its poetry at the cost of literal meaning. This new translation by Vernon Katz and Thomas Egenes fills the need for an (...) Upanishads that is clear, simple, and insightful - yet remains faithful to the original Sanskrit. As Western Sanskrit scholars who have spent their lives immersed in meditative practice, Katz and Egenes offer a unique perspective in penetrating the depths of Eastern wisdom and expressing these insights in modern yet poetic language. Their historical introduction is suited to newcomers and experienced readers alike, providing the perfect entry to this unparalleled work. (shrink)

The Problem of Perception offers two arguments against direct realism--one concerning illusion, and one concerning hallucination--that no current theory of ...

Quentin Smith offers powerful arguments against the New Theory of Reference propounded by leading thhinkers in the philosophy of language. Smith defends the tensed theory of time and argues that the simultaneity is absoltue, basing this position on the theory that all propositions exist in time. Using detailed propostitions and a theory of cognitive significance, he introduces an alternative interpretation of reference that will be relevant to metaphysicians, philosophers of science and philosophers of language and may come to (...) be recognised as the definitive statement on the tensed theory of time. (shrink)

Of all the major philosophical works, Kant's Critique of Pure Reason is one of the most rewarding, yet one of the most difficult. Norman Kemp Smith's Commentary elucidates not only textural questions and minor issues, but also the central problems which arise, he contends, from the conflicting tendencies of Kant's own thinking. Kemp Smith's Commentary continues to be in demand with Kant scholars, and it is being reissued here with a new introduction by Sebastian Gardner to set it (...) in its contemporary context. (shrink)

This book takes us far beyond the usual focus of comparative law with analysis of a broad range of jurisdictions, including mixtures of common and civil law, and also those mixing Islamic and/or traditional legal systems with those derived from common and/or civil law traditions. The discussion is situated within the broader context of the continuing tides of globalization, the emergence of Islamic governments in some parts of the Middle East, the calls for a legal status for Islamic law in (...) some European countries, and the increasing focus on traditional and customary norms of governance in post-colonial contexts. (shrink)

This book examines the meaning of some of the most basic terms we use in both confessional and secular discussion about morality and religion. Is there any credible and distinctive meaning in what we refer to as "right and wrong" and "God"? What do we even mean by meaning itself? Outside specialist academic discourse these terms are rarely examined in depth. Here they are probed with as much rigor as possible, but also accessibly. Literary, philosophical, and theological sources are all (...) widely drawn on in the discussion. Experiences of ordinary life help illustrate the issue and arguments at stake. As a collection of essays each section is freestanding. But there is also a clear overall connecting argument. It demonstrates a common trajectory towards "ultimacy" or "transcendence" in the meaning of these terms. It argues that the meaning of morality, of God, and of meaning itself, is not just an individual or social construction. It is grounded in what lies beyond us. In this way it offers an alternative to reductionist views, and advances a thesis about transcendence which connects across a wide range of both religious and non-religious experience. (shrink)

WE must first state the subject of our inquiry and the faculty to which it belongs: its subject is demonstration and the faculty that carries it out demonstrative science.

This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact, and remains as true to the original work as possible. Therefore, you will see the original copyright references, library stamps (as most of these works have been housed in our most important libraries around the world), and other notations in the work. This work is in the public domain (...) in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. As a reproduction of a historical artifact, this work may contain missing or blurred pages, poor pictures, errant marks, etc. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant. (shrink)

The ‘Pascalian’ tradition in French thought is a moral rigorism that demands practical embodiment while denying that any embodiment of its demands can ever be complete. The power of this tradition may be seen even in French political moralists of the 20th century. It is revealed in Bergson’s view that the open morality must seek practical expression through the closed society, while constantly subverting it. It is revealed in Levinas’s claim that the ‘saying’ requires to be ‘said’ but always undermines (...) the said, so that what is explicit is ‘always wanting’. Directly, and also through the influence of Levinas, the Pascalian tradition exerts a complex influence on Derrida, in whose thoughts about the topic of justice moral rigorism transforms into an idea of radical epistemic incompleteness, or infinite deferral. ‘Pascalians’ such as Bergson, Levinas and Derrida are convinced, consequently, that the ethical can be given only sporadic or uninstitutionalized political expression; in this regard, they may be contrasted with ‘Lockeans’ who believe that political theory is at one remove from our deepest ethical or religious conclusions. In light of that contrast, the differences between Continental and Anglophone political theory may be traced to post-Reformation circumstances rather than, as is often supposed, to the Enlightenment. (shrink)