Vernon L. Smith

Vernon L. Smith is an American economist who helped establish laboratory experiments as a method for studying economic markets. He shared the 2002 Nobel Memorial Prize in Economic Sciences.

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Charles Plott: Charles Plott is an American experimental economist known for laboratory studies of markets and political institutions. Plott and Smith helped establish experimental economics as a research discipline.
Experimental economics: Experimental economics uses controlled studies to investigate economic theories and behavior. Smith’s central contribution was making this method credible for studying markets.
Market design: Market design applies economic theory and evidence to create rules for markets and exchanges. Smith’s controlled tests supplied evidence about how market rules influence outcomes.
Nobel Memorial Prize in Economic Sciences: The Nobel Memorial Prize in Economic Sciences is an annual award for outstanding contributions to economic science. Smith shared the 2002 award for establishing laboratory experiments as a tool in economics.
Kansas State University: Kansas State University is a public research university in Manhattan, Kansas. Smith began his academic career there and conducted early market experiments.
Reinhard Selten: Reinhard Selten was a German economist who shared the 1994 Nobel Memorial Prize for work on game theory. Selten’s experiments and Smith’s market studies helped broaden economics beyond purely theoretical analysis.
Double auction: A double auction is a market in which buyers submit bids and sellers submit offers. Smith used double auctions to test whether competitive prices emerge under controlled conditions.
Electricity market: An electricity market coordinates the generation, sale, and delivery of electrical power. Smith’s later work applied experimental methods to problems in electricity-market design.
Economic methodology: Economic methodology examines the methods, evidence, and assumptions used in economic research. Smith’s work challenged the idea that economic theories could only be tested with field data.
Purdue University: Purdue University is a public research university in West Lafayette, Indiana. Smith’s early experimental economics research developed during his years at Purdue.