Pareto-Efficiency, Hayek's Marvel, and the Invisible Executor

4 Pages Posted: 20 Jan 2014

See all articles by Egmont Kakarot-Handtke

Egmont Kakarot-Handtke

University of Stuttgart - Institute of Economics and Law

Date Written: January 20, 2014

Abstract

This non-technical contribution to the RWER-Blog deals with the interrelations of market clearing, efficient information processing through the price system, and distribution. The point of entry is a transparent example of Pareto-efficiency taken from the popular book How Markets Fail.

Keywords: price system, information processing, distribution

JEL Classification: B59, D30

Suggested Citation

Kakarot-Handtke, Egmont, Pareto-Efficiency, Hayek's Marvel, and the Invisible Executor (January 20, 2014). Available at SSRN: https://ssrn.com/abstract=2381872 or http://dx.doi.org/10.2139/ssrn.2381872

Egmont Kakarot-Handtke (Contact Author)

University of Stuttgart - Institute of Economics and Law ( email )

Keplerstrasse 17
Stuttgart
Germany

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