Abstract
Joseph E. Stiglitz, 2001 Nobel Laureate in Economics, helped to create the theory of markets with asymmetric information and was one of the founders of modern development economics. He played a leading role in an intellectual revolution that changed the characterization of a market economy. In the new paradigm, the price system only imperfectly solves the information problem of scarcity because of the many other information problems that arise in the economy: the selection over hidden characteristics, the provision of incentives for hidden behaviours and for innovation, and the coordination of choices over institutions.
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Hoff, K. (2018). Stiglitz, Joseph E. (Born 1943). In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2221
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2221
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