engleski

Dynamics of invisible hands and information economics

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

Invisible hands; failures; dynamics; externalities; information economics

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