Information, Strategy and Public Policy

In this volume, economists address the matter of the role of policy in a market economy. They ask whether the "invisible hand" mechanism is able to allocate resources to meet the needs of society. They draw on recent work on imperfect information and strategic behaviour, and argue that the models of classical welfare economics are inadequate for understanding modern market economics. The first two chapters attack these standard theories directly, while the following contributions focus on specific examples and areas.