IDEAS home Printed from https://ideas.repec.org/a/kap/revaec/v28y2015i3p237-245.html
   My bibliography  Save this article

Discovery processes, science, and ‘knowledge–how:’ Competition as a discovery procedure in the laboratory

Author

Listed:
  • Vernon Smith

Abstract

These edited remarks explore the relationship of the thought of F.A. Hayek to the development of experimental economics and related programs in economic design. Particularly emphasized are the insights of Hayek with respect to competition and their importance to the theoretical justification for, and empirical results derived from, the experimental study of market behavior. These remarks include some personal commentary on experimental methods, from the early double auctions of the 1960s through more recent work exploring the nature of business cycles. Finally, the intellectual history of the market structures examined in Vernon Smith’s work is discussed, comparing the exploration of the double auction to the horse market of Bohm-Bawerk, as well as the general insight of Adam Smith that causality stems from the propensity to truck, barter, and exchange to the discovery of specialization. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Vernon Smith, 2015. "Discovery processes, science, and ‘knowledge–how:’ Competition as a discovery procedure in the laboratory," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 28(3), pages 237-245, September.
    • Handle: RePEc:kap:revaec:v:28:y:2015:i:3:p:237-245
    DOI: 10.1007/s11138-015-0309-9
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11138-015-0309-9
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11138-015-0309-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:cto:journl:v:21:y:2002:i:3:p:515-544 is not listed on IDEAS
    2. Stanley Reiter, 1978. "A Dynamic Process of Exchange," Discussion Papers 347, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    3. Gjerstad,Steven D. & Smith,Vernon L., 2014. "Rethinking Housing Bubbles," Cambridge Books, Cambridge University Press, number 9780521198097, January.
    4. Smith, Vernon L. & Wilson, Bart J., 2014. "Fair and Impartial Spectators in Experimental Economic Behavior," Review of Behavioral Economics, now publishers, vol. 1(1-2), pages 1-26, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    2. Moroni, Stefano & Antoniucci, Valentina & Bisello, Adriano, 2016. "Energy sprawl, land taking and distributed generation: towards a multi-layered density," Energy Policy, Elsevier, vol. 98(C), pages 266-273.
    3. Fishback, Price & Fleitas, Sebastian & Rose, Jonathan & Snowden, Ken, 2020. "Collateral Damage: The Impact of Foreclosures on New Home Mortgage Lending in the 1930s," The Journal of Economic History, Cambridge University Press, vol. 80(3), pages 853-885, September.
    4. Siri Terjesen & Amy Willis, 2016. "Experimental economics and business education: an interview with Nobel Laureate Vernon Lomax Smith," Small Business Economics, Springer, vol. 47(1), pages 261-275, June.
    5. Levy, Daniel & Mayer, Tamir & Raviv, Alon, 2022. "Economists in the 2008 financial crisis: Slow to see, fast to act," Journal of Financial Stability, Elsevier, vol. 60(C).
    6. Daisy J. Huang & Charles Ka Yui Leung & Chung-Yi Tse, 2018. "What Accounts for the Differences in Rent-Price Ratio and Turnover Rate? A Search-and-Matching Approach," The Journal of Real Estate Finance and Economics, Springer, vol. 57(3), pages 431-475, October.
    7. Vogel, Harold L. & Werner, Richard A., 2015. "An analytical review of volatility metrics for bubbles and crashes," International Review of Financial Analysis, Elsevier, vol. 38(C), pages 15-28.
    8. Katerina Sherstyuk & Krit Phankitnirundorn & Michael J. Roberts, 2021. "Randomized double auctions: gains from trade, trader roles, and price discovery," Experimental Economics, Springer;Economic Science Association, vol. 24(4), pages 1325-1364, December.
    9. Smith, Vernon L., 2010. "Theory and experiment: What are the questions?," Journal of Economic Behavior & Organization, Elsevier, vol. 73(1), pages 3-15, January.
    10. Ferlito, Carmelo, 2019. "The Property Market, Affordability and the Malaysian National Housing Policy," EconStor Preprints 197287, ZBW - Leibniz Information Centre for Economics.
    11. Khalil, Elias, 2022. "Does Friendship Stem from Altruism? Adam Smith and the Distinction between Love-based and Interest-based Preferences," OSF Preprints ygpmq, Center for Open Science.
    12. Coppock, Lee A. & Harper, Daniel Q. & Holt, Charles A., 2021. "Capital constraints and asset bubbles: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 75-88.
    13. Reiter, Stanley & Maroulis, Spiro, 2008. "Stable processes of exchange," Journal of Mathematical Economics, Elsevier, vol. 44(12), pages 1398-1412, December.
    14. Frank Veneroso, 2018. "The Economics of Instability: An Abstract of an Excerpt," Economics Working Paper Archive wp_903, Levy Economics Institute.
    15. Gurbachan Singh, 2016. "Land Price, Bubbles and Permit Raj," Review of Market Integration, India Development Foundation, vol. 8(1-2), pages 1-33, April.
    16. Vernon L. Smith, 2020. "Causal versus Consequential Motives in Mental Models of Agent Social and Economic Action: Experiments, and the Neoclassical Diversion in Economics," Kyklos, Wiley Blackwell, vol. 73(3), pages 341-370, August.
    17. Deirdre Nansen McCloskey, 2017. "Writing The ‘Bourgeois Era’ Trilogy: A Reply To Eric Jones," Economic Affairs, Wiley Blackwell, vol. 37(2), pages 303-309, June.
    18. Bolt, Wilko & Demertzis, Maria & Diks, Cees & Hommes, Cars & Leij, Marco van der, 2019. "Identifying booms and busts in house prices under heterogeneous expectations," Journal of Economic Dynamics and Control, Elsevier, vol. 103(C), pages 234-259.
    19. Brandon Dupont, 2014. "Father Knows Best: Using Adam Smith to Teach Transactions Costs," The Journal of Economic Education, Taylor & Francis Journals, vol. 45(4), pages 320-329, December.
    20. Abbas Mirakhor, 2014. "The Starry Heavens Above and the Moral Law Within: On the Flatness of Economics," Econ Journal Watch, Econ Journal Watch, vol. 11(2), pages 186-193, May.

    More about this item

    Keywords

    Vernon Smith; F. A. Hayek; Experimental economics; Business cycles; History of thought; Nobel prize; A14; B21; B25; B53; D47; G21;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:revaec:v:28:y:2015:i:3:p:237-245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.