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About: The Invisible Hand and Allocative Efficiency

Module by: Steven Hinson. E-mail the author

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Name: The Invisible Hand and Allocative Efficiency
ID: m42970
Language: English (en)
Summary: This module introduces the concept of allocative efficiency and demonstrates how markets can approach an allocatively efficient allocation of resources. The first example is highly simplified to demonstrate the concept. The second utilizes a real world example and more standard supply and demand analysis. The final section presents limitations of real world markets in achieving allocative efficiency.
Subject: Business, Social Sciences
Keywords: Allocative Efficiency, Demand and Supply, Economics, Invisible Hand, Markets, Pareto Efficiency, Resource Allocation, Supply and Demand
License: Creative Commons Attribution License CC-BY 3.0
Authors: Steven Hinson (hinsonsy@webster.edu)
Copyright Holders: Steven Hinson (hinsonsy@webster.edu)
Maintainers: Steven Hinson (hinsonsy@webster.edu)
Latest version: 1.1 (history)
First publication date: Jan 31, 2012 9:07 pm -0600
Last revision to module: Feb 1, 2012 9:42 am -0600

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Version History

Version: 1.1 Feb 1, 2012 9:42 am -0600 by Steven Hinson
Changes: 
Created module

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Hinson, S. The Invisible Hand and Allocative Efficiency, Connexions Web site. http://cnx.org/content/m42970/1.1/, Feb 1, 2012.

American Medical Assocation (AMA) Manual of Style:

Hinson S. The Invisible Hand and Allocative Efficiency [Connexions Web site]. February 1, 2012. Available at: http://cnx.org/content/m42970/1.1/.

American Psychological Assocation (APA) Publication Manual:

Hinson, S. (2012, February 1). The Invisible Hand and Allocative Efficiency. Retrieved from the Connexions Web site: http://cnx.org/content/m42970/1.1/

Chicago Manual of Style (Bibliography):

Hinson, Steven. "The Invisible Hand and Allocative Efficiency." Connexions. February 1, 2012. http://cnx.org/content/m42970/1.1/.

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Steven Hinson, "The Invisible Hand and Allocative Efficiency," Connexions, February 1, 2012, http://cnx.org/content/m42970/1.1/.

Chicago Manual of Style (Reference, in Author-Date style):

Hinson, S. 2012. The Invisible Hand and Allocative Efficiency. Connexions, February 1, 2012. http://cnx.org/content/m42970/1.1/.

Modern Languages Association (MLA) Style Manual:

Hinson, Steven. The Invisible Hand and Allocative Efficiency. Connexions. 1 Feb. 2012 <http://cnx.org/content/m42970/1.1/>.