Adam Smith and the welfare cost of optimism.

The writer explores the welfare losses identified by Adam Smith as occurring because competition allocates resources to the highest bidders, whose expectations usually have an optimistic bias. He generalizes Smith's thesis on interest ceilings to a plan for resource allocation, and he examines 20th...

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Detalles Bibliográficos
Publicado en:History of Political Economy Vol. 29; pp. 185 - 201
Autor principal: Niehans, Jürg
Formato: Artículo
Publicado: Duke University Press Summer 1997
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Adam Smith and the welfare cost of optimism.
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        au: Niehans, Jürg
      su:
        Smith, Adam, 1723-1790
        Optimism
        Pessimism
        Resource allocation -- Mathematical models
        Philosophy of economics
        Welfare economics
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        subj:
          Optimism
          Pessimism
          Resource allocation -- Mathematical models
          Philosophy of economics
          Welfare economics
          Smith, Adam, 1723-1790
      ab: The writer explores the welfare losses identified by Adam Smith as occurring because competition allocates resources to the highest bidders, whose expectations usually have an optimistic bias. He generalizes Smith's thesis on interest ceilings to a plan for resource allocation, and he examines 20th-century literature for traces of this plan. He translates this argument into a model of resource allocation among three agents and then develops it for any number of agents.
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    language: English
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