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...
| Published in: | History of Political Economy Vol. 29; pp. 185 - 201 |
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| Format: | Article |
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Duke University Press
Summer 1997
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| Online Access: | View this record in EBSCOhost |