Markets as Systems

Peter Dorman

Chapter 21 in Microeconomics, 2014, pp 487-516 from Springer

Abstract: Abstract In the first few chapters of this book we presented the fundamental question modern economics was created to answer: can the awesome power unleashed by the industrial revolution be left to the push and pull of the marketplace, or does it need to be steered by the conscious intervention of government or some other institution acting on behalf of society? Adam Smith thought that markets could do most of the job on their own, and subsequent generations of economists have struggled to identify the precise conditions under which Smith’s Invisible Hand could be expected to function. Much of what they discovered has been summarized in the Market Welfare Model and the many adjustments and caveats we have examined in our tour of microeconomics.

Keywords: Marginal Cost; General Equilibrium; Demand Curve; Market Equilibrium; Pareto Optimality (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-642-37434-0_21

Ordering information: This item can be ordered from
http://www.springer.com/9783642374340

DOI: 10.1007/978-3-642-37434-0_21

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().