The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Smith, Vernon (Born 1927)

  • Catherine C. Eckel
Reference work entry


Vernon Lomax Smith shared the 2002 Nobel Prize in Economics for his contributions to the development of experimental economics. Among his insights is the idea that ‘institutions matter’: trading institutions affect the efficiency of a market, and the optimal institution depends on the market context. He has made important contributions to market and institutional design, public goods, bargaining, experimental methodology and the philosophy of science.


Behavioural finance Bilateral bargaining Chamberlin, E. H. Competitive equilibrium Constructivist rationality Dictator game Double auction Ecological rationality Experimental economics Experimental methods in economics Posted offer markets Smart markets Smith, V. L. Social distance 

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Catherine C. Eckel
    • 1
  1. 1.