2026/06/08 by Jimena Hurtado, Maria Pia Paganelli · 1 voice
Arts and Humanities · Economics, Econometrics and Finance · Social Sciences · #Economic Theory and Institutions #Philosophical Ethics and Theory #Political Philosophy and Ethics
paper · doi:10.1215/00182702-12636620
openalex publication_date 2026/06/08 · openalex created_date 2026/06/09 · openalex updated_date 2026/06/11
Abstract Adam Smith's Wealth of Nations is often associated with the idea that in markets individuals’ interests are led by an invisible hand that unintentionally promotes society's interest. Yet, Smith not only qualifies the conditions under which the invisible hand can align individual interests with society's interest, but he also distinguishes between different interests. This distinction among different interests allows him to show that interests can often conflict, as key asymmetries fracture the harmony between individual and social interest, systematically benefiting one interest at the expense of others. Differences in bargaining power between buyers and sellers; unequal understanding of interests across social groups; asymmetries in access to institutional power and the ability to shape legislation; and divergent levels of institutional stability all tend to generate conflict, rather than promote harmony of interests.