4. Funding

Siegel, Sidney. 1953. “Certain Determinants and Correlates of Authoritarianism,” Dept. of Psychology. Stanford University.

Other successful students of Ward Edwards were Paul Slovic and Sara Lichtenstein.

Wallis, W. Allen and Milton Friedman. 1942. “The Empirical Derivation of Indifference Functions,” O. Lange, F. McIntyre and T. Yntema, Studies in Mathematical Economics and Econometrics in Memory of Henry Schultz. Chicago: University of Chicago Press, 175–89.

Smith’s 1962 paper states in its first footnote: “The experiments on which this report is based have been performed over a six-year period beginning in 1955. They are part of a continuing study, in which the next phase is to include experimentation with monetary payoffs and more complicated experimental designs to which passing references are made here and there in the present report.” The issue of payoffs is repeatedly raised in Smith, Vernon L. 1962c. “An Experimental Study of Competitive Market Behavior.” The Journal of Political Economy, 70(2), 111–37.

____. 1976. “Experimental Economics: Induced Value Theory.” The American Economic Review. Papers and Proceedings of the Eighty-eighth Annual Meeting of the American Economic Association, 66(2), 274–79, ____. 1973. “Notes on Some Literature in Experimental Economics.” Social Science Working Paper, California Institute of Technology, 21, 1–27.

That experiment was conducted after the manuscript of the 1962 was written and is reported in the paper’s footnote 9.

Miller, Ross M.; Charles R. Plott and Vernon L. Smith. 1977. “Intertemporal Competitive Equilibrium: An Empirical Study of Speculation.” The Quarterly Journal of Economics, 91(4), 599–624.

The issue of the size of payments has received considerable attention, especially in the context of the ultimatum game and other bargaining situation in low income countries see for instance: Roth, Alvin E.; Vesna Prasnikar; Masahiro Okuno-Fujiwara and Shmuel Zamir. 1991. “Bargaining and Market Behavior in Jerusalem, Ljubljana, Pittsburgh, and Tokyo: An Experimental Study.” The American Economic Review, 81(5), 1068–95, Slonim, Robert and Alvin E. Roth. 1998. “Learning in High Stakes Ultimatum Games: An Experiment in the Slovak Republic.” Econometrica, 66(3), 569–96. Hoffman, Elizabeth; Kevin A. McCabe and Vernon L. Smith. 1996. “On Expectations and the Monetary Stakes in Ultimatum Games.” International Journal of Game Theory, 25(3), 289–301. For a definition of the ultimatum game, see Chapter 5, Footnote 2.

Cooper, David J.; John H. Kagel; Wei Lo and Qing Liang Gu. 1999. “Gaming against Managers in Incentive Systems: Experimental Results with Chinese Students and Chinese Managers.” American Economic Review, 89(4), 781–804.

These experiments remained unpublished. Selten was a full Professor at the Department of Economics of the Free University of Berlin, Germany, in 1969–72. In 1972 he moved to University of Bielefeld.

Selten moved to Bonn in 1984.

Newlon came to NSF in 1974 as Associate Director for the Economics Program. He became Director of the Economics Program in 1980.

Ledyard served at the Advisory Panel for the Economics Program during 1978–1980.

Plott’s first NSF grant, GS-36214, titled Political Economic Decision Processes with $59,800 awarded covered the period 11/72–11/73.

Plott graduated from Virginia in 1965, Newlon in 1970. University of Virginia was a center of public choice research with James Buchanan and Gordon Tullock on faculty.

Hong, James T. and Charles R. Plott. 1982. “Rate Filing Policies for Inland Water Transportation: An Experimental Approach.” The Bell Journal of Economics, 13(1), 1–19.

See footnote 185 for reference.

Ronald H. Coase Prize for excellence in the study of law and economics (jointly with Matthew Spitzer), given by the University of Chicago Law School, University of Chicago Law School, 1986.

Blackmann, J. 1978. “Experimental Studies of Choice in Economics.” NSF Program Report, 1(3 (June)), pp. 7–14.

Editor: Who were those panel members? Ledyard: They included Michael Spence, James Heckman, Robert Barro (a macroeconomist), Arthur Goldberger (an econometrician).” The first two went on to become Nobel Laureates.

Northwestern University Law School Grant awarded to Matthew Spitzer for joint research, 1980–1981. Northwestern University Grants Committee Grant, 1979–1980.

Publications and grant details mentioned in Chapter 3, Footnote 5. 1969–71 NSF grant: “Theoretical Research and Collaborative Experimental Research on Micro-economic Games” 1972–74 NSF grant: “Theoretical Research in Game Theory, Oligopoly, and Individual Behavior”—joint but separate with Hoggatt.

Friedman, James W. 1971. “A Non-Cooperative Equilibrium for Supergames.” The Review of Economic Studies, 38(1), 1–12, ____. 1973. “A Non-Cooperative Equilibrium for Supergames: A Correction.” The Review of Economic Studies, 40(3), 435. Friedman in this paper provided perhaps the first folk theorem type result.

Editor: What exactly did the dean not understand? Al Roth: “The FAS Dean told me there wasn’t room in Littauer at that time, but that if I came to Harvard I could eventually have a lab once the government department was relocated to a new building, freeing up space in Littauer.” Littauer building houses the Harvard Economics Department.

HBS stands for the Harvard Business School. Roth accepted the joint offer in 1998.

Kagel moved from Houston to Pittsburg in 1988.

Kagel spent the years 1982–1988 in Houston.

Energy Laboratory, University of Houston.

See Chapter 6, Footnote 12 for details.

Other topics included coordination in payment systems, committee decision making, and tax reform. 1995-97: research project for the Flower Auction Aalsmeer titled “The role of information in the flower auction: an experimental study.” 1996: research project for the Radiocommunication Agency of the Dutch Ministry for Transportation and Waterworks) titled “The auctioning of ether frequencies by the government.” 1998-99: research project for the Dutch Ministry of Social Affairs and Employment titled “An experimental study of the Van Elswijk Plan,” that examined an alternative tax system for financing unemployment benefits. See Footnote 237 for additional context. 2003-04: Dutch Central Bank: research project “Impact of rotation on committee decision making.” Published as: R. Bosman, P. Maier, V. Sadiraj, and F. van Winden, “Let me vote! An experimental study of vote rotation in committees, Journal of Economic Behavior & Organization, Vol. 96, pp. 32–47. 2007-08: research project for the Dutch Central Bank titled “An experimental study of high-valued payment systems.”

John Snow, the later Secretary of Treasury in the years 2003–6. Like Charlie Plott John Snow received his Ph.D. in economics from the University of Virginia in 1965.

This is the Hong and Plott (1982) paper mentioned earlier several times.

Plott, Charles R. 1981. “Theories of Industrial Organization as Explanations of Experimental Market Behavior,” S. C. Salop, Strategy, Predation, and Antitrust Analysis. Federal Trade Commission. Plott, Charles R. and L. L. Wilde. 1982. “Professional Diagnosis Vs. Self-Diagnosis: An Experimental Examination of Some Special Features of Markets with Uncertainty,” V. L. Smith, Research in Experimental Economics. Greenwich, Conn.: JAI Press.

Grether, David M. and Charles R. Plott. 1984. “The Effects of Market Practices in Oligopolistic Markets: An Experimental Examination of the Ethyl Case.” Economic Inquiry, 22(4), 479–507.

See Chap. 3, Footnote 76 for references and further context.

Southern California Edison was the primary electricity supply company for much of Southern California.

This example is reported in more accurate detail in Smith, Vernon L. 2008a. Discovery—a Memoir. Bloomington, IN: AuthorHouse. pp. 302–6.

This project concerned wholesale market price manipulation in the Singapore electricity grid, and the value of vesting contracts as a tool to control price volatility.

The project was conducted for the Federal Government of Australia in the period 1996–2006 and was titled “Testing a proposed system scenario for negotiating energy delivery contracts in real time.”

Chao, Hung-po and Hillard G. Huntington. 1998. Designing Competitive Electricity Markets. Dordrecht: Kluwer Academic Publishers, Denton, Michael J.; Stephen J. Rassenti; Vernon L. Smith and Steven R. Backerman. 2001. “Market Power in a Deregulated Electrical Industry.” Decision Support Systems, 30(3), 357–81, Olson, Mark; Stephen Rassenti; Mary Rigdon and Vernon Smith. 2003. “Market Design and Human Trading Behavior in Electricity Markets.” IIE Transactions, 35(9), 833–49, Rassenti, S. J. and V. L. Smith. 1998. “Deregulating Electric Power: Market Design Issues and Experiments.” International Series in Operations Research and Management Science, (13), 105–20, Rassenti, Stephen J.; Vernon L. Smith and Bart J. Wilson. 2003. “Controlling Market Power and Price Spikes in Electricity Networks: Demand-Side Bidding.” Proceedings of the National Academy of Sciences of the United States of America, 100(5), 2998–3003, ____. 2002. “Using Experiments to Inform the Privatization/Deregulation Movement in Electricity.” CATO Journal, 21, 515–44.

A precise reference has not been determined.

Project title: Examining Navy personnel reassignment practices. U.S. Navy January 2007—December 2009.

The Exxon Valdez oil spill was one of the worst environmental disasters of the 20^th century. It occurred in Prince William Sound, Alaska, on March 24, 1989.

Exxon hired Betsy Hoffman in 1991.

At that time it was a working paper which became: Binger, Brian R.; R. F. Copple and Elizabeth Hoffman. 1995a. “Contingent Valuation Methodology in the Natural Resource Damage Regulatory Proces: Choice Theory and the Embedding Phenomenon.” Natural Resources Journal, 35(3), 443–59.

See Endnote #LVII.

Goeree, Jacob; Charles A. Holt and John O. Ledyard. 2007. “An Experimental Comparison of Flexible and Tiered Package Bidding,” Wireless Telecommunications Bureau of the Federal Communications Commission. ____. 2006. “An Experimental Comparison of the FCC’s Combinatorial and Non-Combinatorial Simultaneous Multiple Round Auctions,” Wireless Telecommunications Bureau of the Federal Communications Commission. ____. 2004. “An Experimental Investigation of the Threshold Problem with Hierarchical Package Bidding,” Wireless Telecommunications Bureau of the Federal Communications Commission.

Armantier, Olivier; Charles A. Holt and Charles R. Plott. 2010. “A Reverse Auction for Toxic Assets.” Social Science Working Paper, California Institute of Technology, 1330.

Pertains to the Goeree and Holt (2010) Hierarchical Package Bidding paper cited in Chap. 3, Footnote 76.

Editor: “What was the company and what was the publication? Vernon Smith: “This was Ohio Edison in the late ‘90s. I don’t recall which of our papers on electricity involved that study, but they were very involved in that study and liked it. Of course by then we had been to New Zealand and Australia and knew the ropes.”

The reference for the medical labor market is: Roth, Alvin E. and Elliott Peranson. 1999. “The Redesign of the Matching Market for American Physicians: Some Engineering Aspects of Economic Design.” American Economic Review, 89(4), 748–80. The references for school choice mechanisms: Abdulkadiroglu, Atila; Parag A. Pathak and Alvin E. Roth. 2005a. “The New York City High School Match.” Ibid.95(2), 364–67, Abdulkadiroglu, Atila; Parag A. Pathak; Alvin E. Roth and Tayfun Sönmez. 2005b. “The Boston Public School Match.” American Economic Review. Papers and Proceedings, 95(2), 368–71.

Plott, Charles R. 1982. “Industrial Organization Theory and Experimental Economics.” Journal of Economic Literature, 20(4), 1485–527.

____. 1981. “Theories of Industrial Organization as Explanations of Experimental Market Behavior,” S. C. Salop, Strategy, Predation, and Antitrust Analysis. Federal Trade Commission.