Are there normative social epistemologies? Vernon Smith, Adam Smith, and the challenge of systems

Vernon Smith has been a pioneer in demonstrating that many of “paradoxes” of behavioral economics actually can be explained by the larger logic of cooperation, propriety, and sympathy outlined by Adam Smith in his two masterworks, The Theory of Moral Sentiments and The Wealth of Nations. Far from predicting narrow and myopic self-absorption, the “true” model outlined by A. Smith is much more robust in accounting for observed variations in behavior, including those found in the laboratory. Vernon Smith’s encounters with A. Smith, and his later move to elaborate Smith’s earlier theories as claims to be tested experimentally, trace out a remarkable career of important contributions and lasting insights. One central theme of Vernon Smith’s work illuminates an important path for future research in answering a core question: Is there an invisible hand that tends to correct mistakes and improve social processes over time?

Duke Scholars

Author Michael C. Munger Political Science