Herbert Simon quotes/Invisible Hand

Invisible Hand

“In examining the processes of social coordination, economics has given top billing sometimes almost exclusive billing to the market mechanism. It is indeed a remarkable mechanism... The optimality theorems stretch credibility, so far as real-world markets are concerned, because they require substantive rationality of the kinds we found implausible in our examination of the theory of the firm. Markets populated by consumers and producers who satisfice instead of optimizing do not meet the conditions on which the theorems rest.”

• Source: Simon, H. A. (1996). The Sciences of the Artificial (Third Edition). Computers & Mathematics with Applications (3rd ed., Vol. 33). Cambridge, MA: MIT Press. ISBN: 9780585360102. Retrieved 2018-08-23 from https://monoskop.org/images/9/9c/Simon_Herbert_A_The_Sciences_of_the_Artificial_3rd_ed.pdf. Chapter 2, page 32-33.

• See Also:
  • Herbert_Simon_quotes
  • Herbert_Simon_quotes/Invisible_Hand

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