Constructivist and Ecological Rationality #3

In the chapter Asymmetric Information, Smith critiques the ideas of Joseph Stiglitz. Stiglitz is another Nobel Prize winning economist, who got the prize for work on markets with asymmetric information.  These are markets that don’t meet the assumptions for "perfect competition". Stiglitz’s early work focused on markets where the participants are "imperfectly" informed and unequally informed. Smith takes Stiglitz to task for jumping to the unwarranted conclusion that such markets are “imperfect”, inefficient, and thus need governmental constructivist intervention.  Stiglitz is a vocal critic of Adam Smith’s “invisible hand” and free markets. Vernon Smith defends Adam Smith’s ideas. Stiglitz has become a prominent leftist.