Pareto-Efficiency, Hayek's Marvel, and the Invisible Executor
4 Pages Posted: 20 Jan 2014
Date Written: January 20, 2014
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: Suggested Citation