Advanced Topics in Liberty

Spontaneous Orders and Experimental Economics

Conference for Students - October 19-21, 2012

Discussion Leader: Bart Wilson

Session 1:        Lecture: The Double Blind Auction

Session 2:        Rules and Order in Impersonal Market Exchange

Hayek, Friedrich A. “The Use of Knowledge in Society.” The American Economic Review 35, no. 4 (September 1945): 519–530. Entire article.

Hayek, F. A. Law, Legislation and Liberty, Volume 1: Rules and Order [Phoenix Edition]. Chicago: The University of Chicago Press, 1973, 1978. Chapter 2, “Cosmos and Taxis” (pages 35–54).

Jevons, William Stanley. The Theory of Political Economy. London: Macmillan & Co., 1888. Selections from Chapter 4, “Theory of Exchange” (pages 84–90).

Smith, Vernon L. “Markets as Economizers of Information: Experimental Examination of the “Hayek Hypothesis”.” Economic Inquiry XX (April 1982): 165–179. Entire article.

Session 3:        Personal Socioeconomic Exchange I

McCabe, Kevin, Mary Rigdon and Vernon Smith. “Positive Reciprocity and Intentions in Trust Games.” Journal of Economic Behavior and Organization 52 (2003): 267–275. Entire article.

McCabe, Kevin, Mary Rigdon and Vernon Smith. “Sustaining Cooperation in Trust Games.” Economic Journal 117 (July 2007): 991–1007. Entire article.

Smith, Adam. The Theory of Moral Sentiments. Edited by D. D. Raphael and A. L. Macfie. Indianapolis: Liberty Fund, Inc., 1982. Part I, Section I, Chapter 1, “Of Sympathy” (pages 9–13), Part III, Chapter 1, “Of the Principle of Self–approbation and of Self–disapprobation” (pages 109–113), Chapter 2, “Of the Love of Praise, and of that of Praise–worthiness; and of the Dread of Blame, and of that of Blame–worthiness” (pages 113–123), and Part VI, Section II, Chapter 1, “Of the Order in which Individuals are Recommended by Nature to our Care and Attention” (pages 219–227).

Session 4:        Personal Socioeconomic Exchange II

Hoffman, Elizabeth, Kevin McCabe and Vernon Smith. “The Impact of Exchange Context on the Activation of Equity in Ultimatum Games.” Experimental Economics 3, no. 1 (June 2000): 5–9. Entire article.

Hume, David. A Treatise of Human Nature. Edited by David Fate Norton and Mary J. Norton. Oxford: Oxford University Press, 2000. Book 3, Part I, Section 1, “Moral Distinctions not deriv’d from Reason” (pages 293–302) and Part II, Section 1, “Justice, Whether a Natural or Artificial Virtue?” (pages 307–311).

Smith, Vernon L. Rationality in Economics: Constructivist and Ecological Forms. New York: Cambridge University Press, 2008. Selections from Chapter 10, “The Effects of Context on Behavior” (pages 211–227).

Session 5:        Morals and Markets

Hume, David. A Treatise of Human Nature. Edited by David Fate Norton and Mary J. Norton. Oxford: Oxford University Press, 2000. Book 3, Part II, Section 2, “Of the Origin of Justice and Property” (pages 311–322), Section 3, “Of the Rules, Which Determine Property” (pages 322–330), Section 4, “Of the Transference of Property by Consent” (pages 330–331), and Section 5, “Of the Obligation of Promises” (pages 331–337).

Kimbrough, Erik O., Vernon L. Smith, and Bart J. Wilson. “Exchange, Theft, and the Social Formation of Property.” Journal of Economic Behavior and Organization 74, no. 3 (June 2010): 206–229. Entire article.

Session 6:        Markets, Wealth, and Property Rights

Smith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations, Volume I. Edited by R. H. Campbell and A. S. Skinner. Indianapolis: Liberty Fund, Inc., 1982. Book I, Chapter 1, “Of the Division of Labour” (pages 13–24), Chapter 2, “Of the Principle Which gives Occasion to the Division of Labour” (pages 25–30), and Chapter 3, “That the Division of Labour is Limited by the Extent of the Market” (pages 31–36).

Kimbrough, Erik O., Vernon L. Smith, and Bart J. Wilson. “Historical Property Rights, Sociality, and the Emergence of Impersonal Exchange in Long-Distance Trade.” American Economic Review 98, no. 3 (June 2008): 1009–1039. Entire article.

Session 7:        Competition, Institutions, and Intervention Policies

Smith, Vernon L. Rationality in Economics: Constructivist and Ecological Forms. New York: Cambridge University Press, 2008. Chapter 4, “Market Institutions and Performance” (pages 61–93).