When inequality is significant, free markets are not necessarily the way to go, says Northwestern economist

Tuesday, August 4, 2020 - 12:30 in Mathematics & Economics

One of the most classic intuitions in economics is the idea that competitive markets are the best way to allocate resources in society. However, in a new paperto be published in the journal Econometrica, economists Piotr Dworczak of Northwestern, Scott Duke Kominers of Harvard and Mohammad Akbarpour of Stanford conclude that free markets are optimal under some circumstances — but at other times […]

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