We present a semantic and textual analysis of the first two chapters of the Wealth of Nations to elucidate the meaning of several of Adam Smith’s key ideas, including “the necessaries and conveniences of life,” “power of exchanging,” and “the division of labour.” Using the...

We experimentally compare first-price auctions and multilateral negotiations after introducing horizontal product differentiation into a standard procurement setting. Both institutions yield identical surplus for the buyer, a difference from prior findings with homogeneous products that results...

While neo-classical analysis works well for studying impersonal exchange in markets, it fails to explain why people conduct themselves the way they do in their personal relationships with family, neighbors, and friends. In Humanomics, Nobel Prize-winning economist Vernon L. Smith and his...