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Ep. 24 - Vernon Smith: Self-Interest Reconsidered

The Ralston College Podcast

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What Is Maximum Utility?

The one widespread economic theory is called maximum utility, or max u. A how would you describe max u? Is a two part question. What is max u? And what was it about your famous experiments that max u was unable to explain? Well, the actually, the marked experiments did explain that, that as each personn the first experiments that i did, ah, by finding that equilibrium, each person did earned the most money he could against the constraint that everybody else was also earning their most. Each person does best, and the market as a whole does best. That's buyand large, that's what markets do. They're going to just let people do what they want to

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