Vernon L. Smith

“People are not always rational, but they are not systematically irrational either.”

“The first lesson of economics is scarcity: there is never enough of anything to fully satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics.”

“Property rights are the foundation of a market economy.”

“I am a theorist, but I am a theorist who has been altered by the facts.”

“Trust is an economic lubricant. It reduces the costs of transaction.”

“Markets are not perfect, but they are better than any other system for organizing economic activity.”

“What we learn from experiments is often surprising and counterintuitive.”

“Experimental economics is about creating a dialogue between theory and data.”

“The laboratory is a place where we can control the environment and observe behavior in a controlled setting.”

“Reciprocity is a very powerful human motive.”

“My work is about understanding how people behave in market settings.”

“The idea that you can create a new institution and it will work is a very dangerous one.”