A life of experimental economics, volume i forty years of discovery

A LIFE OF EXPERIMENTAL ECONOMICS, VOLUME I FORTY YEARS OF DISCOVERY VERNON L SMITH A Life of Experimental Economics, Volume I Vernon L. Smith A Life of Experimental Economics, Volume I Forty Years of Discovery Vernon L Smith Economic Science Institute Chapman University Orange, CA, USA ISBN 978-3-319-98403-2 ISBN 978-3-319-98404-9  (eBook) https://doi.org/10.1007/978-3-319-98404-9 Library of Congress Control Number: 2018951570 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations Cover image: © Vernon L Smith Cover design by Ran Shauli This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Opulence, not poverty, puts the strain on the best there is in people —Arthur E Hertzler, The Doctor and His Patients, 1942 Preface In the ten years since I finished Discovery (2008), new learning and perspectives on earlier work prompt me to revisit its incomplete state Re-visitation evokes a feeling expressed by C S Lewis: “The unfinished picture would so like to jump off the easel and have a look at itself!” (Letters to Malcolm, 1964) I seem always to live with a certain incompletion, prompted by the obsolescence of earlier understandings For me, returning to these pages is a pathway of renewal, consolidation, and rediscovery In A Life of Experimental Economics the inspirational theme continues— satisfaction and pleasure in whatever work one chooses In PrairyErth (1991) William Least Heat-Moon visits the Tallgrass Prairie of Chase County, Kansas whose haunts I have also visited There, he finds and interviews McClure Stilley, a Kansas quarryman, who expresses the sentiment in this theme beautifully: “Limestone is something you get interested in and something you learn to like And then you become part of it You know every move to make: just how to mark it off, drill it, load it, shoot it and then you see a real straight break, and you feel good.” Some of this pleasurable desire to reflect and reexamine has been implicit in a few of my standard scientific papers, whose format and style sucks (I addressed these pretentions more formally in Rationality in Economics, 2008, Chapter 13, pp 296–308) Room for reflecting and expressing those sentiments in a scientific paper is limited to hints between the lines I can it here in a conversational style that I find more natural, wherein I can just sit and talk with you The new work revises and expands much of the earlier edition’s content and continues the style of injecting in-context memories of social, ecovii viii     Preface nomic, and political events in my lifespan And it includes my recent tenyear learning and work experiences at Chapman University The move to Chapman coincided with the economic collapse of 2007–2008, an event that revived childhood experiences enveloped by the Depression It compelled my attention, not as a macro-economist, which I am not, but as an experimental economist long sensitized to incentives in human behavior, and its implications for society Moreover, I had a stanch ally—Steve Gjerstad, whom I have long known—and we were well matched in our search for new insights The turbulent housing crisis was as widely unanticipated as that of 1929–1930 Why did the severity of the recent collapse blindside everyone? We argue that in both episodes, housing and mortgage credit undermined our prosperity and then the recovery I also include new insights into the characteristic differences between two kinds of markets studied in the laboratory: The rapid equilibrium discovery properties of non-re-tradable goods consumed on demand is manifest in the stability of expenditures for non-durables in the economy; the sharply contrasting bubble-like price performance of asset markets is manifest in durables—notably housing—a recurrent source of instability in the economy I discuss new perspectives on Adam Smith, known as the founder of classical economics Smith’s neglected contributions to the psychology of human sociability have brought unexpected new thinking and modeling to the study of human conduct, particularly in two-person experimental interactions, like “trust” games Lastly, I expound on a theme in the prior edition that faith is at the foundation of religion; both concern our personal search for understanding; both involve thought processes in higher dimensional spaces than our sensory and instrumental observations Throughout I have tried to maintain the narrative style of writing from the memories of personal experience, introducing economics and other topical content where memory or context invoke relevant principles or experiences; as Tom Hazlett commented, I combine “biography, history, economics, and philosophy.” Commenters and reviewers have approved of that style, as did Sylvia Nasar (A Beautiful Mind) whose invaluable commentary on an early draft of Discovery confirmed the tone to be sounded That tone may slip in this work as I introduce new learning that cries out for informal expression, but is more narrowly the province of professional economics than personal narrative The new subtitles, Forty Years of Discovery and The Next Fifty Years, capture the perennial freshness of the experiences I want to convey—experiences well enough digested to be penned I am especially encouraged to under- Preface     ix take this re-writing and research effort because of the warm acceptance of Discovery in reviews that have come to my attention, and for which I am grateful Recent years of experience have brought home to me even more vividly the perpetual human error of unconsciously seeking verification of our beliefs and thinking processes The error is part of what Adam Smith called self-deceit We have the habit, given our beliefs about anything—scientific propositions, political opinion, religion, the malevolence of an adversary— to seek further confirming evidence of those beliefs We like to be, or to appear, right, to be comfortable in that state, and this leads to a certain sense of “righteousness.” If contrary evidence surfaces, we tend to discount it or explain it away so that it is less likely to change our belief state Most detrimental to learning and to intellectual growth is our protective reluctance to deliberately seek tests or data or circumstances that would challenge our beliefs, requiring us to re-evaluate what it is we think we know Being open in this way need not imply that we will flip back and forth with unstable beliefs Indeed, traditions will be stronger the more they survive challenging tests of validity, rather than the weak easily hurdled tests that only confirm and entrench what we believe we know If your views are not changing, you are probably not learning Orange, USA Vernon L Smith Acknowledgements My personal debts run deep, beginning with John Hughes (The Vital Few), for 36 years my trusted friend and confidant until his death in 1992 His mark upon me pervades these volumes To Silvia Naser (A Beautiful Mind) and my dear friend of 38 years, Deirdre McCloskey (The Bourgeois Virtues), who read the earliest drafts of the manuscript and corrected, nudged and encouraged me in directions that shaped it to the end Tom Hazlett (The Political Spectrum) friend and cherished co-author I knew Tom before he knew me because I was an avid reader of his columns that appeared in Reason magazine beginning in 1989 Andreas Ortmann, economic theorist, experimentalist, and intellectual historian par excellence in all, who’s comments, reviews—both published and private—have never failed to be rewarding to me Steve Hanke (http://sites.krieger.jhu.edu/iae/), wise counselor on monetary and fiscal policy, whose private and published reviews have encouraged and supported my dedication to these volumes Charles Plott (Collected Papers on the Experimental Foundations of Economics and Political Science In three volumes), who, because I could outfish him, suspected that there might be something to experimental economics and became a co-conspirator in its development in the 1970s Charlie invented experimental political economy Shyam Sunder (Theory of Accounting and Control), methodologist, experimentalist, whose passion in the search for foundations has long been an inspiration xi xii     Acknowledgements E Roy Weintraub (How Economics Became a Mathematical Science), reviewer, whose wide-ranging interests included me My Amazon reviewers, each in his own tongue: Paul Johnson, friend and colleague, University of Alaska, Anchorage; Herb Gintis (Individuality and Entanglement: The Moral and Material Bases of Social Life) with whom I share gloriously radical roots and a passion for moral wisdom Roger Farley, investor and portfolio manager, whom I not know But we resonate well Pete and Jackie Steele, a breed of the many ordinary people that have made America May we never lose their unwavering integrity, love of life, and of the good land Stephen Semos for his careful editing, fact checking, and many suggestions for improving style and content down to the final crescendo Candace Smith, devoted companion in our explorations of love, understanding, and faith developing And to co-authors and students galore—Steve Gjerstad, Dave Porter, Stephen Rassenti, Arlington Williams, and more whose imprint is in these pages And a very special debt to the Liberty Fund for inviting me to many of their Socratic colloquia, over the last forty years, on topics and figures in the philosophy and history of the struggle for liberty I want to acknowledge my frequent use of quotations from Adam Smith (Dugald Stewart edition, 1853) and David Hume, published by Liberty Fund and that are available for quotation and free electronic download access You will encounter many more in these pages “This is remembrance— revisitation; and names are keys that open corridors no longer fresh in the mind, but nonetheless familiar in the heart” (Beryl Markham, West with the Night) 256     V L Smith in another week or so Then she must wait for a publisher to bite In anticipation of that agony, I remind her that my book, The Vital Few, was turned down by nine publishers, and has been in print for a quarter of a century [Now more than fifty-three years, and continuing as a classic!] Publishers often don’t know what they are doing But I maintain that any reasonable book can find its publisher, ultimately, so you just have to suffer out the waiting February 17, 1990 If you don’t mind, I am using you as a reference The Dean of CAS here is putting up my dear old book, The Vital Few, for some kind of an award for writing about entrepreneurs I don’t know more about it than that … It has been a long time since I needed a reference for anything, and most of my old teachers are either dead or retired But you were there when it was first written, and can attest that entrepreneurship wasn’t exactly a hot topic when I wrote the book back in 1962 I took a chance, then, and it certainly paid off for me in the long run The thing is still in print … and sells right along at a couple of thousand copies a year … I added two more biographies in 1986 to the expanded addition I think that may be what causes it to keep selling All is well with us I have finished with my chemo therapy, and so far so good It is not a process I would recommend, but if you have cancer, and the oncologists want that, you would be a fool, or a big risk taker, not to go along … I don’t know if you have seen any of Stan’s sculpting He is a regular Michelangelo Mary Gray bought me a small statue for Xmas I didn’t ask what it cost, but it was enough that he apparently gave the proceeds to charity! He does sell them And has commissions I have told him to stop worrying about economics and just sculpt Someone else will think of the theorems, but no one else will be able to sculpt that way If I had that much talent at something, I would be exploiting it One doesn’t live forever, and one has no tenure on one’s talent It can just stop some day, as it did with Sibelius, leaving him with a half century to just stare into space before he died John I miss John, and it will always be so He was one of those rare friends—an intellectually intimate brother who both lightens and enlightens your way He always had probing questions about why, how, where, and when But mixed in with the serious scholarship, there were always laughs and good cheer Mary Gray told me that when I sent him a copy of my book, Papers in Experimental Economics (1991), he was in the next room tearing apart the mailing carton, then let out one of his famous trademark laughs and some chuckles Mary Gray asked, “What is it, John?” And John replied, “It’s a Nobel Prize, that’s what it is: a Nobel Prize.” I am not sure that book made any difference, but it was symbolic to John, who had unbounded confidence 12  The People     257 in his friends He was personally thrilled with their every success and always discounted the downers and disappointments No one dared to squelch his enthusiasm about a project, a friend’s project, or a friend or loved one His happiness for others was always genuine If anyone could have survived cancer, detected too late, it was John He fought for his life and would not concede until the very end, bearing out Dr Hertzler’s observation that irrespective of belief systems, people in the end accept the inevitable in quiet peace John was a Jack Mormon, defined by Howard Jarvis of California Proposition 13 fame as an “ex Mormon who smokes and drinks.” But his Mormon heritage, combined with his intellectual endowment, served him well as a scholar and as a man—here was a man who loved, and was loved by, those he befriended He had great faith, if not always conventional faith However, I recently learned from Bartell Jensen, one of our early Purdue PhDs that John visited Logan, Utah, in his last months and his spirit had returned “home” to his wonderful Mormon heritage I doubt not for a moment, the truth of Bartell’s witness Here is a short excerpt from the Deseret News obituary “Death: Jonathan R T Hughes” on June 3, 1992 Jonathan Roberts Tyson Hughes, a native of Twin Falls, Idaho, died of cancer May 30, 1992, in Evanston, Illinois …A graduate of Twin Falls High School, John played football and was one of the region’s finest clarinetists He attended Utah State University, graduating in economics in 1950 After two years at the University of Washington, he received a Rhodes Scholarship to Oxford, where he earned a D Phil in economics in 1955, studying with the finest economists in England At Oxford, John met Mary Gray Stilwell, a Texan studying anthropology, and they were married in 1953 A son, Benjamin, was born in 1960, and twin daughters, Charis and Margaret, were born in 1962 John worked for the Federal Reserve Bank of New York, Purdue University, Columbia University, University of California at Berkeley, and spent the last 30 years as a professor of economic history at Northwestern University in Evanston, Illinois He has been a Distinguished Professor of Economics and Robert E and Emily King Professor of Business Institutions there since 1989 A productive scholar, Dr Hughes has written widely in the field of economic history, producing a dozen books and more than one hundred professional articles His book, “The Vital Few: The Entrepreneur and American Economic Progress,” won a $25,000 prize from the Kenan Enterprise Center for its celebration of American entrepreneurship His writing was witty and insightful He has been a Guggenheim Fellow, Ford Foundation Faculty Fellow, Fellow of All Souls College, Oxford, and president of the Economic History Association In 1990 he was given an honorary Doctor of 258     V L Smith Social Science degree from Utah State University The same year, his former students and colleagues published a festschrift in his honor entitled “The Vital One: Essays in Honor of Jonathan R.T Hughes.”… One of my most treasured experiences was to write a tribute to him and to savor the moment as I read it at the gathering to celebrate the life, influence, and accomplishments of this wonderful person It took me months to write it I wrote a draft, revised it, set it aside, returned to edit it some more, over and over and over again, until there were no more additions, edits, subtractions, or fine-tunings left in me, and I finally let it be That exercise, conducted over the months from his death in the spring until he was honored at Northwestern the following October 1992, gutted and cleansed me of all grief I was free at last, thank God almighty, free at last, happy to have known and loved this great friend, colleague and confidant I now look back on this expressed sense of relief and am aware that you are never free of such deep connections, but I was free of it as a steady weight, free to get on with all that had to be done Jonathan Roberts Tyson Hughes A Memorial On this occasion we are privileged to celebrate the memory of a wonderful life; one that spanned sixty-four years; one that touched and altered dozens, likely hundreds, of other lives In his life John taught us how to live with energy, splendor, joy, and hope In his death he taught us how to die with stubborn resistance, candor, optimism, and inspiration I am awash with delightful memories, but I will remember best and miss most his unflagging personal support; no one else could get as genuinely excited about your work as about his own He believed in his friends, as he would have them believe in themselves He never allowed me not to believe in myself, 12  The People     259 nor other friends not to believe in themselves He awakened the hidden strength within you When he wrote of the history he had learned it was as if he had experienced it, much as he spoke and wrote of the history he had truly lived: down the white water rapids of Idaho’s Bruneau River; playing jazz clarinet in Ely, Wells, Elko, and Fish Haven; the Great Strike of 1951 at Nushagak Station I first read The Vital Few, and its masterful essay on Brigham Young, in manuscript, then entitled The Good Land I was astonished for it read like he had been there, lived it all That’s when I knew how good writing is born of personal— even if vicarious—experience that draws the reader into the phenomena, as it lived I was disheartened that the title was changed to the colorless, though accurate The Vital Few, thus eliminating John’s ringing text from Exodus 3:8: “And I come down to deliver them out of the hand of the Egyptians, and to bring them up out of that land unto a good land and a large, unto a land flowing with milk and honey.” John loved the land, because he was of the land: Idaho, Utah, Nevada, Washington, Indiana, Illinois, Vermont His heroes were most especially of the Good Land that flowed with the milk and honey of nineteenth-century opportunity John catapulted himself into your life, a fact that, shall we say, was not universally appreciated I welcomed and blossomed from this warm intrusion for he was the brother I never had, the confidant who nourished so very deeply, and meaningfully 260     V L Smith He came to Purdue for one reason: he told me that he could no longer tolerate his Federal Reserve Bank superior blue-penciling all his work Such was his fierce Mormon independence After Purdue, although there were sometimes long spaces between our encounters, somehow we managed always to pick up where we had ended, as if it had been but an hour, or a day With John there were no beginnings or endings; just the flow of experience shared It was this continuity, this dependability and reliability in the face of unimportant interruption, that most significantly defined our relationship Others, I think, must have shared a similar experience, because of who he was That continuity defined and gave sustenance to an enduring thirty-six-year bond between us I shall miss that bond dearly, but without repining, because of the strength he inspired His works, his personal influence, will of course live, as resistant to extinction as was his spirit to the end This is assured by those of us here, on this day, and elsewhere, who were touched so intimately by him, for with John there were no beginnings or endings Now it is for each of us, the living, privately, as well as through this congregation, to find whatever meaning for our lives, that is contained in his death He came as dust 12  The People     261 delivered of the good land; he chose to return as dust, for renewal, unto a land made sweeter by his coming —Vernon Smith Delivered at Northwestern University Alice Millar Chapel October 25, 1992 See Figs. 12.1, 12.2, and 12.3 Fig. 12.1  Vernon’s nearby escape at Purdue 262     V L Smith Fig. 12.2  Purdue honorary degree 1989 Fig. 12.3  Tanya and her Pups Cincinnati, 1965–1966 Author Index A Acosta-Hughes, Benjamin 239–240 Adams, Sarah Flower 13 Adelman, Irma 250 Allen, R.G.D 122 Ames, Ed 197, 204, 228, 232, 233, 234, 251 Amihud, Y 199 Anderson, Carl 119 Armstrong, Louis 106–107 “Art” Lindeman, A.R 209, 237 B Bair, Sheila 130 Beech, Olive Ann 64 Beech 56, 63, 77 Beech, Walter 33, 64, 78 Beekman, Jane 111 Beloof, Bob 71 Beloof, Ida 71–73 Berra, Yogi 28, 125, 237 Bewley, Truman 120, 254 Bibby, Dause 205 Bledsoe, Samuel T Bohm-Bawerk 198 Bougher, Billye 6, 23, 26, 31, 34, 46, 149, 153, 159–161, 164, 168–170, 172, 173, 176 Bougher, Grover A 1, 5, 25, 26 Bougher, Lulu Belle (Lomax) 25 Boulding, Kenneth 150 Brimmer, Andy 106 Brockert, Juanita 79 Brown, Bill 126 Brown, E.H.P 121 Brown, Mary 126 Brubaker, Elizabeth 65 Buchanan, Jim 230 Buck, Jean 65 Bunche, Ralph 104 C Callahan, Officer 143 Carlson, John 231 Carmichael, Hoagy 17 Carruth, W.H 38 Carter, Jim 96, 97 Carter, Jimmy 212 © The Editor(s) (if applicable) and The Author(s) 2018 V L Smith, A Life of Experimental Economics, Volume I, https://doi.org/10.1007/978-3-319-98404-9 263 264     Author Index Cessna, Clyde 33, 64, 78, 125 Chamberlin, E.H 122, 198–200 Chaplin, Charlie 82, 154 Charnes, Abe 162, 208 Chenery, Hollis 120 Chessman, George 151 Chipman, John 143 Clark, Darlene 27, 69 Clark, Ed 97 Clark, Max 26, 27, 35, 69 Clinton, Hillary 121 Clower, Robert 243 Cockran, Jackie 64 Coleman, Sheldon 45, 46 Cole, Merle 158 Coleman, William C 45 Coolidge, Calvin 25 Cooper, Henry S.F 18 Cooper, James Fenimore 18 Cooper, Paul Fenimore 18 Curry, John Stuart 55 Cyert, Dick 207 D Danes, Claire 188 Darwin, Charles 150 Davidson, Kirby 230 Davis, Lance 228, 231, 246 Debreu, Girard 235 Debs, Eugene Victor 7, 69 Debs, Gene Debs, Eugene de Saint Exupéry, Antoine Saint Exupéry 15, 64 Didonato, Joyce 130 Dooley, Betty 65 Dougherty, Peter 66 Drake, Colonel 58, 152 Dresser, Paul 195 Duran, Jane 151 Dusenberry, Leona 65 E Earhart, Amelia 64 Easterlin, Dick 239 Eaton, Don 28, 89–91 Eckstein, Otto 194, 197 Eddington, Sir Arthur 113 Edwards, Ward 206 Ehrlich, Paul 41 Einstein, Albert 31, 113 Eisenhower 111 President Eisenhower 122 Ellington, Duke 107 Ellsberg, Daniel 69, 143–146 Engelhardt, Tris (H Tristram) Engelhardt, Tris 160 F Faraday, Michael 150 Farmer, James 104 Farnsworth, Richard 152 Fisher, Frank 248 Fisher, Irving 139 Fisher, R.A 152 Flanders, June 241 Fosdick, Harry Emerson 160 Fouraker, Lawrence 201, 206 Franklin, Ben 80 Freidman, Milton 62 G Garland, Judy 54 Garvey, Olive White 64 Garvey 56, 63 Gazzaniga, Michael 186 Gershenkron, Alexander 139 Gesner, Abraham 40 Gibran, Kahlil 32, 116, 176 Gilbert, Dan 10, 17, 241 Gillis, Floyd 143, 231, 232 Gintis, Herb xii, xv Author Index    265 Gleaves, Victor “Vic” 209 Governor Dever 142 Grandin, Temple 178, 183, 187–189 Green, Ted 141, 142 H Haberler, Gottfried 138–140 Hanke, Steve 13 Hansen, Alvin 137–139 Harding, Warren G 69, 70 Harkleroad, Joyce 126 Harris, Seymour 140, 240 Hayek, F.A 137, 177 Hemberger 55–57, 64, 79, 111 Herter, Christian 142 Hertzler, Arthur E 14, 105, 111, 114–118, 122 Hicks, J.R 122, 137, 243, 246, 249 Hill, Rosemary 79 Hill, Virginia 79 Hines, Howard 241 Hirshleifer, Jack 201 Phyllis 201 Hitler 70, 77, 102, 103 Hoffman, Elizabeth Betsy 254 Hooper, Judy 233 Horwich, George 228, 238, 252 Houser, George 104 Hovde, Fred 207, 253 Hughes, John 167, 171, 180, 227, 228, 232, 238 Hughes, Mary Gray 238 Hume, David 61, 188 Hungerford, H.R 205 I Ingersoll, Ralph 67 Innes, Walter 63, 64 Ise, John 25, 129, 195 J Jackson, Mick 188 Jacobs, Don 253 Jarvis, Howard 251, 257 Jay, Barbara 141 Jeans, Sir James 113 Jewkes, John 246, 248 Johnson, Lyndon 106, 107 Jones, Casey 1, 2, 8, K Kahneman, Daniel 202 Kamien, Mort 228 Keaton, Buster 7, 82 Kelly, Walt 235 Kennedy, John 75, 194 Kennedy 246–247 Kirchner, Harry 126, 127 Kirchner, Norma 126 Kissinger, Henry 144 Koch, Fred 63 L Ladd, Elizabeth 196 Lave, Lester 207 Ledyard, John 228–229 Lee, Julia 16 Leffler, George 199, 203 Lemtre, Georges 16 Leontief, Wassily 138–140, 240 Lewis, C.S 149 Lindbergh, Charles 16 List, John 200 Lloyd, Cliff 243 Lloyd, Harold 82 Lomax, Abel 195–196 Jake 196 Delsy 196 Lomax, Alan Lomax, Asahel 266     Author Index Grandpa Lomax 2–3, 7, 9–11, 61, 63, 67, 109, 149, 151–155, 176, 196 Lomax, Belle 25 Smith, Belle L 149, 164 Lomax, Dal 169 Lomax, Ella (Moore) 6, 176 Lomax, Ella R 164 Grandma Lomax 153 Lomax, Ezra 6, Uncle Ezra Lomax, Jonathan 196 Lomax, Quintin 111, 196 Lomax, Sarah 196 Lomax, William Pemlott 196 Louis, Joe 244 N Nemoto, J 104 Nerlove, Marc 201, 254 Neuberger, Egon 234 Newton, Isaac 16 Nicholson, Jack 165 Nixon, Richard 144, 145, 246 North, Doug 74 O O’Keefe, Specs 142 Oschewski, Bill 76 Buschow, A.A 77 P M Machlup, Fritz 139 March, Jim 207 Markham, Beryl 64 Marschak, Jacob 122, 140 Marsh, Lamont 114, 116, 117, 230 Marshall, Alfred 198, 234 Mascagni 17, 68 Masumoto, T 104 Matilda, Nancy 111 Maynes, E Scott 131 McEvoy, Tom 80 Helen 80 McCloskey, Deirdre 165 Mead, Margaret 257 Meridith, James 245 Michner, Joanne 126 Millay, Edna St Vincent 15, 149 Miller, Bruce 126, 128, 133 Miller, Glenn 114 Miller, Mert 237 Miller, Pat 133 Minotani, C 104 Mrs Blackburn 81, 84 Mrs Burrite 65 Muench, Tom 206, 228 Paige, Satchel 125 Park, Dave 126 Patterson, Bob 113 Pauling, Linus 73, 119 Pauly, Mark 254 Phillips, Michael 166 Plott, Charlie 207, 230 President Harding 69 President Obama 70 Obama 138, 145 Pinker, S 17 Steve Pinker 55, 78, 186 Q Quant, Dick 141 Quirk, Jim 237, 240 R Richard S Howey Dick Howey 121, 122, 197, 198 Roosevelt, Franklin 7, 70, 103 President Roosevelt 7, 130 Roosevelt 8, 72, 77 Randall, Jack 65 Author Index    267 Randall, Jimmy 26, 65 Rapoport, Amnon 206 Rapoport, Anatol 206 Reiter, Stanley 236 Reser, Clinton 65, 79 Reyes, Ray 113, 114 Rice, Don 206, 232 Robert Oppenheimer, J 119 Robinson, Joan 122 Rose, Ruth 115 Rosenberg, Nate 228, 234, 241, 245 Ross, Ralph 126 Rubin, Paul 251 Russell, Bertrand 70, 113, 119, 129 Ruth, Babe 15 S Samuelson, Paul 140 Samuelson 119, 137 Sanchez, Benny 126 Saposnik, Rubin 162, 208, 237, 244 Scherer, Mike 254 Schwartz, Anna 62 Schwartz, Nancy 228 Selten, Reinhard 201 Sezai, Yukiyasu, Dr 104 Shapley, Harold 80 Marlene 80 Smith, Maggie Blanche (McCurdy) 151 Grandma Smith 174 Siegel, Sidney 201, 202 Siegle, Alberta 201 Silberberg, Gene 228 Simon, Herb 207 Smith, Adam 38, 56, 61, 62, 150, 188–189 Smith, Candace Candace 20, 27, 31, 80, 84, 113, 118, 180, 186, 221 Smith, Charles Alexander 151 Grandpa Smith 53, 153, 174 Smith, Deborah 18, 129, 132, 136, 147, 156, 217 Smith, Eric 71, 129, 132, 136, 147, 156, 216 Smith, Harriet Izella 26 Smith, Joyce 124, 126, 129, 130, 132, 136, 137, 142, 150, 156, 160, 163, 171, 193, 194, 215, 216, 218, 229, 240 Smith, Torrie 19, 133, 136, 163, 193, 216 Smith, Vernon Chessman 25, 151 Snell, Carl 28 Snow, C.P 248 Snowden, Edward 145 State, Ray 3, 9, 10 Stearman, Lloyd 33, 63, 64, 77, 78 Stearman 33, 77 Steele, Pete 217 Stevenson, Robert Louis 167 Stigler, George 138, 208 Stiglitz, Joe 237 Stilley, McClure 171 Sutton, Willie “The Actor” 141 Svorencik, Andrej 201 T Thomas, Norman 7, 26, 71–73, 97, 120, 153 Thomas 7, 72–73 Tinbergen, Jan 140 Tritz, Roman 166 Trump, Donald 70, 121 President Trump 248 Tullock, Gordon 251 Tversky, Amos 202 U Uncle Norman 151–153 Uncle Sullivan 111 268     Author Index V Vannon, Mike 254 Vetten, Dean 27, 65 Vickers, Jack 63 Viskusi, Kip 254 von Humbolt, W 227 von Karman 119 von Mises 119 W Walker, General 245 Wallich, Henry 139 Walters, Alan 244 Ward, Denny 4, 155, 159, 162, 169, 170–172, 176 Wayne, John 138 Webb, Sim 1, Weiler, Em 193, 204, 205, 242, 243, 246, 251, 253 Weldon, Norm 206, 229, 232 Westergaard, Peter Talbot 141 Whitehead, A.N 113 White, Tanner 196 White, William Allen 56 Wiley, Jay 230 Wood, Grant 57 Wood, John 228 Weiler, Emanual T 252 Weiler, Em 193, 204, 205, 242, 243, 246, 251, 253 Subject Index A C African American blacks 47, 91, 95, 104, 106, 125, 126 colored 2, 104 negroes 47, 104, 106, 123, 127 n-word 107 Anti-war movement 71 Asset markets housing 62 mortgage 62 Auctions Dutch or uniform price 203 Henry Wallich 139 Milton Friedman 138 Treasury bill 206 Autism brain 177 mind 177 spectrum 182 Temple Grandin and 178, 187, 188 Civil rights 129 B Brain 123, 176, 177, 179, 185–187 D Depression 31, 62, 64, 138, 155, 159–161, 164, 165, 176 Federal Reserve and 62 Discrimination 104, 105, 125–127 E Economics experimental 195, 201, 206, 207, 228, 229 lab and field 122, 201, 227 macroeconomics 137, 228, 234 F Freedom bought for two slaves, Abel Lomax 196 First Amendment rights and 72, 145 in education 255 © The Editor(s) (if applicable) and The Author(s) 2018 V L Smith, A Life of Experimental Economics, Volume I, https://doi.org/10.1007/978-3-319-98404-9 269 270     Subject Index Games trust 183 Great Recession 46, 62, 138, 200 stocks and 67 consultant for SLSF 208 Recessions housing bubbles and credit 138 Religion 104, 105 early education 68 L S G Learning 191 Learning as discovery 229 Lomax ancestors freed two slaves, “Jake” and “Delsi” 196 Indiana 195, 196 North Carolina 196 revolutionary war service 196 Science 113, 230 Social/Sociability/Sociality 59, 79, 177–179, 189 Supply and demand 197, 198 T Teaching role models 122 M Mind 177, 178, 186, 187 U Utility theory 139, 144 O Oil (petroleum) industry displaced oil from coal 40, 41, 82 P Philosophy 8, 113 R Railroad W Work early Boeing 94 Drug Store 81, 83, 84 OK Drive-In 89, 90, 92 love made visible 32 ... understand the human condition philosophically as well as scientifically What a fascinating and amazing journey of discovery we are privileged to witness in reading A Life of Experimental Economics... University of Alaska, Anchorage; Herb Gintis (Individuality and Entanglement: The Moral and Material Bases of Social Life) with whom I share gloriously radical roots and a passion for moral wisdom.. .A Life of Experimental Economics, Volume I Vernon L. Smith A Life of Experimental Economics, Volume I Forty Years of Discovery Vernon L Smith Economic Science Institute Chapman University Orange,