Ep. 24 - Vernon Smith: Self-Interest Reconsidered

Stephen Blackwood speaks with the Nobel Laureate in Economic Sciences, Vernon L. Smith. They begin by defining and exploring commonly misunderstood economic terms—markets, capitalism, equilibrium—and then unpack the discoveries of Dr Smith’s pioneering experiments in economics, which—against widely held assumptions—revealed the operation of beneficence and non-zero-sum reciprocity at the heart of free exchange. ‘Self-interest’ is thus profoundly re-evaluated. Paradoxically, the only way to self-realization is through concern for others.  Also, Vernon recommends for further reading, especially on the topic of his experimental games, which are described but not entirely comprehensible in the podcast, the following: Vernon L. Smith (1991) Papers in Experimental Economics. New York: Cambridge University Press.