J. R. G: How were you able to reproduce market conditions in the laboratory?
J. R. G: You have performed the experiments with people of many different cultures and ages, and they all behave remarkably the same. Is this one of
J. R. G: Another remarkable phenomenon is that people tend to converge to the market equilibrium, even if they don't know what the final outcome
J. R. G: What have you learned about what happens when the government intervenes in the market?
F. T: In Guatemala many people believe that the government should play a role in making electricity available to the part of the population that
doesn't have those services; so they dispute the idea that the power industry should be profit-seeking. Why is it important that it be so?
F. T: Therefore, what we need to do is to foster competition in the power industry...
F. T: What do you believe caused the energy crisis in California?
F. T: Do you see a role for Experimental Economics as an economics teaching tool?
F. T: Do you think that in the future this will be a more generalized teaching tool?
Vernon L. Smith sits down with José Raúl González and Fritz Thomas to talk about experimental economics. He explains how he was able to reproduce the market conditions by representing the economic diversity and by assigning production costs to those who played the role of producers and consumer costs to those who played the role of buyers. He focuses on how people tend to converge to the market equilibrium without knowing what the final outcome may be and also comments that this equilibrium is reached when people do their best for their own benefit without any constraints. Smith emphasizes the important role that experimental economics plays in the academic world as well as the motivation it gives to students.
Vernon L. Smith
Vernon L. Smith was awarded the 2002 Nobel Prize in Economics for his introducing experimental methods in economic analysis. He is founder of the Interdisciplinary Center for Economic Sciences, George Mason University and has been president of Public Choice Society, Economic Science Association, Western Economic Association and Association for Private Enterprise Education (APEE), among others. Smith holds a PhD in economics from Harvard University and is also honorary doctor in economics from Universidad Francisco Marroquín.
Interview with Vernon L. Smith for Todo a Pulmón Vernon L. Smith, Jose Raúl González, Fritz Thomas
Special Collections Room Universidad Francisco Marroquín Guatemala, March 26, 2004
A New Media - UFM production. Guatemala, March 2004 Camera 1: Matthew Carey; camera 2: Sergio Miranda; camera 3, digital editing: Jorge Samayoa; index: Joseph Cole; synopsis: Sebastian del Buey; synopsis reviser: Daphne Ortiz publication: Fernando De León
This work is licensed under a Creative Commons 3.0 License Este trabajo ha sido registrado con una licencia Creative Commons 3.0