Abstract

This paper focuses on the game-theoretic interpretation of Adam Smith’s thought brought forth by experimental economist Vernon L. Smith. The aim of the contribution is threefold: (a) giving a systematic account of how Vernon Smith formalized the fundamental structure of The Theory of Moral Sentiments in order to explain cooperative results in lab experiments; (b) showing that Vernon Smith saw in Adam Smith an alternative representation of social cooperation which transcends the boundaries of classical game theory; (c) contextualizing Smith’s interpretation in the Hayekian/neo-institutional trend that linked Adam Smith to a perspective integrating institutional analysis into economic and social theory