Otteson first became known for his writings on the ethics of Adam Smith. In his book, "Adam Smith's Marketplace of Life" (Cambridge University Press, 2002), he argued that Smith's moral philosophy proposed a "marketplace model" for the creation, development, and maintenance of large-scale human social orders, including morality. He also argues that this "market model" unifies Smith's two books, his 1759 "Theory of Moral Sentiments" and his 1776 "Inquiry into the Nature and Causes of the Wealth of Nations," thereby providing a resolution to the long-standing "Adam Smith Problem."