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Accepting Quote by W. Brian Arthur

“The invisible hand is not perfect. Indeed, the invisible hand is a little bit arthritic ... I'm a believer in free markets, but I think we need to be less naïve. We need to accept that markets give us pretty good solutions, but occasionally they will lock in something inferior.” quote by W. Brian Arthur
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“The invisible hand is not perfect. Indeed, the invisible hand is a little bit arthritic ... I'm a believer in free markets, but I think we need to be less naïve. We need to accept that markets give us pretty good solutions, but occasionally they will lock in something inferior.”

W. Brian Arthur

About This Quote

Source Talk: Economics and Complexity, 2018

Free markets work well but have flaws; they can lock in suboptimal outcomes.

In simple terms: Markets are good but imperfect.

Key Takeaway

Recognize market limits and intervene wisely.

Themes

economics imperfection policy

Mood

critical inquisitive

Type

analytical policy-oriented

When to use this quote

  • regulatory design
  • investment strategy
  • public policy

Key Concepts

complex systems market failure

Questions to Reflect On

  • What market failures have you observed?
  • How can we design better safeguards?
A Different Perspective

Over‑reliance on markets can hinder progress.

4.7 out of 5 (4 ratings)

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