On Externalities, Information and the Government-Assisted Invisible Hand

Bibliographic Data

ID9727101
AuthorsOtto A Davis, Andrew B Whinston (0000-0002-8580-4088)
Year1966
Volume33
Issue131
Pages303
Publication date1966-08-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherJSTOR (PUBLISHER)
DOI10.2307/2552406
OpenAlexW2331341152
LanguageEN
Citations received6
References cited1

Recently Professor Wellisz [13] critically commented upon some contributions to the externality problem 2. One would welcome such a critical comment were it not for the fact that Wellisz's treatment of the problem is rather misleading. This article attempts to make the issues more clear by (i) pointing out certain errors in Wellisz's article, (ii) indicating where his treatment fails to show an appreciation of one of the main points of these recent contributions, and (iii) briefly sketching a new approach to the problem which has certain advantages over most of the previous proposals. In trying to accomplish these three aims, the problem of information, created by the very existence of externalities, is emphasised.3

Business · Economics · Externality · Government (linguistics) · Invisible hand · Market economy · Microeconomics · Economic theories and models · Economic Theory and Institutions · Economic Theory and Policy · Philosophy