Vernon L. Smith

AAA

DEFINITION of 'Vernon L. Smith'

An American economist who won the Nobel Prize in Economics in 2002, along with Daniel Kahneman, for his research in experimental economics. He has shown the importance of alternative market institutions and has developed wind-tunnel tests for alternative market designs. His research has also explored capital theory, finance, natural resource economics, industrial organization, property rights economics and neuroeconomics.

INVESTOPEDIA EXPLAINS 'Vernon L. Smith'

Smith was born in Kansas in 1927. He earned his Ph.D. in economics from Harvard University and has taught economics at numerous universities, including Purdue, Stanford, Brown, the University of Massachusetts, the California Institute of Technology, the University of Arizona, George Mason University and Chapman University. Among his many other achievements, Smith is a Senior Fellow at free-market think tank The Cato Institute, a distinguished fellow of the American Economic Association and a member of the National Academy of Sciences. He is also a member of the board of editors of numerous economics journals.

RELATED TERMS
  1. Economist

    An expert who studies the relationship between a society's resources ...
  2. Market Economy

    An economic system in which economic decisions and the pricing ...
  3. Microeconomics

    The branch of economics that analyzes the market behavior of ...
  4. Free Market

    A market economy based on supply and demand with little or no ...
  5. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  6. Laissez Faire

    An economic theory from the 18th century that is strongly opposed ...
Related Articles
  1. Economics

    The Economics Of Labor Mobility

    Loosening labor restrictions has both good and bad effects for a country and its workers.
  2. Entrepreneurship

    Adam Smith And "The Wealth Of Nations"

    Adam Smith's 1776 classic may have had the largest global impact on economic thought.
  3. Fundamental Analysis

    4 Misconceptions About Free Markets

    These fallacies have hounded free market economists since the days of Adam Smith.
  4. Economics

    A Practical Look At Microeconomics

    Learn how individual decision-making turns the gears of our economy.
  5. Economics

    Why Can't Economists Agree?

    There are many reasons why economists can be given the same data and come up with entirely different conclusions.
  6. Forex Education

    Free Market Maven: Milton Friedman

    As proponent of free market capitalism, this economist changed the way the world's economies operate.
  7. Active Trading

    Giants Of Finance: John Maynard Keynes

    This rock star of economics advocated government intervention at a time of free-market thinking.
  8. Investing Basics

    Muriel Siebert: Female Finance Pioneer

    Muriel Siebert has blazed many paths for investors, but is especially relevant as the first woman to sit on the NYSE.
  9. Investing Basics

    The Intelligent Investor: Benjamin Graham

    Learn about the man who mentored Warren Buffett, who eventually became the investing "Oracle of Omaha".
  10. Economics

    Adam Smith: The Father Of Economics

    This free thinker promoted free trade at a time when governments controlled most commercial interests.

You May Also Like

Hot Definitions
  1. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  2. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  3. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  4. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  5. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  6. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
Trading Center