The virtue of market inefficiency

posted by
June 28, 2011
Foundation for Economic Education
by Sandy Ikeda  
Posted in Commentary

"Markets are often rightly characterized as extraordinary problem solvers. Under the right rules of the game (including private property, free exchange, and the rule of law) people following their own self-interest can coordinate their plans with one another more or less successfully, generating an overall order without being aware, or needing to be aware, of how it all gets done. That’s why economists sometimes say that markets are a lot 'smarter' than any single person." (06/28/11)  

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