Vernon L. Smith
Nobel laureate: Nobel Prize in Economic Sciences (2002)
Biography
Vernon Lomax Smith was born on January 1, 1927, in Wichita, Kansas. He had a broad education across several schools, starting at Wichita North High School and moving on to Friends University, Kansas State University, the University of Kansas, the University of Massachusetts Amherst, the California Institute of Technology, and Harvard University. This varied academic background later influenced his innovative approach to economic research.
Smith became a key figure in experimental economics, using lab methods to test economic theories. He taught at several prestigious universities, including as McLellan/Regent's Professor of Economics at the University of Arizona, professor of economics and law at George Mason University, and now at Chapman University. He was also a board member of the Mercatus Center and is a senior fellow at the Cato Institute.
In 2002, Smith won the Nobel Memorial Prize in Economic Sciences alongside Daniel Kahneman. The prize highlighted his work in behavioral economics and experimental economics, particularly for using lab experiments as a tool in economic analysis and exploring different market mechanisms. This recognition cemented his reputation as a leading economist of his time.
In addition to the Nobel Prize, Smith has received numerous accolades during his career. He became a Fellow of the Econometric Society in 1987 and joined the National Academy of Sciences in 1995. His other honors include the Hayek Medal in 2008, the Distinguished Fellowship in the American Economic Association, and an honorary doctorate from the University of Lyon in 2018. He also received an honorary degree from Universidad Francisco Marroquín, where the Vernon Smith Center for Experimental Economics Research is named after him.
Smith founded and is president of the International Foundation for Research in Experimental Economics (IFREEE), showing his dedication to advancing the field. He remains active in various academic and policy groups, advising the Independent Institute, the Center for Growth and Opportunity at Utah State University, and the Madden Center for Value Creation at Florida Atlantic University. His work keeps influencing how economic research and policy analysis are conducted worldwide.
Before Fame
Growing up in Kansas during the Great Depression, Smith saw the economic struggles that later shaped his academic interests. He started his education in Wichita's public schools and then attended several universities around the Midwest and elsewhere. This was during a time when modern economic theory was on the rise, and economics was becoming more mathematical.
In the mid-20th century, economic methods were changing, shifting from purely theoretical to more empirical and experimental approaches. Smith joined this changing field after World War II, during a time when universities were expanding and new research methods were emerging. His diverse education at multiple institutions allowed him to play a part in this shift in economic studies.
Key Achievements
- Won the 2002 Nobel Memorial Prize in Economic Sciences for contributions to behavioral and experimental economics
- Established laboratory experiments as a standard tool in empirical economic analysis
- Founded the International Foundation for Research in Experimental Economics (IFREEE)
- Elected Fellow of the Econometric Society (1987) and National Academy of Sciences (1995)
- Pioneered the study of alternative market mechanisms through experimental methods
Did You Know?
- 01.Smith founded the International Foundation for Research in Experimental Economics (IFREEE), which continues to promote experimental methods in economic research worldwide
- 02.The Vernon Smith Center for Experimental Economics Research at Universidad Francisco Marroquín in Guatemala is named in his honor
- 03.He attended seven different educational institutions throughout his academic career, from high school through graduate studies
- 04.Smith shares his 2002 Nobel Prize with psychologist Daniel Kahneman, highlighting the interdisciplinary nature of his work in behavioral economics
- 05.He was elected to the National Academy of Sciences in 1995, seven years before winning the Nobel Prize
Awards & Honors
| Award | Year | Details |
|---|---|---|
| Nobel Prize in Economic Sciences | 2002 | for having established laboratory experiments as a tool in empirical economic analysis, especially in the study of alternative market mechanisms |
| Distinguished Fellow of the American Economic Association | — | — |
| Fellow of the Econometric Society | 1987 | — |
| honorary doctorate from University of Lyon (ComUE) | 2018 | — |
| Hayek Medal | 2008 | — |