Rediscovering Adam Smith: How The Theory of Moral Sentiments can explain Recent Evidence in Experimental Economics
Professor Douglas E. Stevens, Florida State University and Visiting Fellow at the Adam Smith Research Foundation, University of Glasgow
Date and time: Wednesday 30 March 2011, 1.00-2.00pm
Venue: Adam Smith Research Foundation Seminar Room, 66 Oakfield Avenue
Abstract: Recent experimental tests of economic theory have provided evidence consistent with the existence of internalized social norms that control narrow self interest. I discuss how Adam Smith’s first book, The Theory of Moral Sentiments, can be used to explain this evidence. I begin by discussing The Theory of Moral Sentiments and other aspects of Adam Smith’s life that researchers in economics, accounting, and finance typically overlook. Next, I present recent experimental evidence that has been difficult to explain using traditional economic theory. Finally, I discuss how The Theory of Moral Sentiments can be used to explain this evidence. I conclude that Adam Smith’s moral theory is general and powerful enough to explain much of the recent evidence in experimental economics.
About the speaker: Professor Stevens has published research on organizational control and financial markets in such journals as The Accounting Review; Contemporary Accounting Research; and Accounting, Organizations and Society. His primary research interest is in experimental economics, which uses experimental methods to test economic theory and behavioral extensions. He has begun to cite Adam Smith's The Theory of Moral Sentiments to explain his finding that economic decision makers in the lab behave as if they have internalized social norms. During his time at ASRF, he will be presenting his empirical research and will be doing further research on Adam Smith's moral theory.