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Economic research - Ekonomska istraživanja, Vol. 19 No. 1, 2006.

Preliminary communication

DYNAMICS OF “INVISIBLE HAND” AND INFORMATION ECONOMICS

Arnela Cerić
Marinko Škare
Hazbo Skoko

Full text: english pdf 131 Kb

page 17-22

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Abstract

The purpose of this article is to explore the invisible hand in the modern economies. In other words this article is to test the applicability of Smith’s famous metaphor and its relevance to the new area of information economics. In the first section the authors discuss the historical context, followed by a dynamic approach to invisible hand., i.e. its shaking, and conclude with the malfunctioning of the invisible hand in the information economics.
Later they discuss information economics as a definite market failure, finding irrelevance of invisible hand in modern economies.

Keywords

Invisible hand; failures; dynamics; externalities; information economics

Hrčak ID:

3754

URI

https://hrcak.srce.hr/3754

Publication date:

1.6.2006.

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