Introduction and Overview

Abstract

The Oxford English Dictionary defines coordinate as: “To act in combined order for the production of a particular result.” The discipline of economics could be viewed as analyzing the coordination of economic life and economic equilibria are often portrayed as harmonious outcomes. Obvious examples are equilibrium in a single market (when the amount supplied equals the amount demanded) and the general competitive equilibrium of an economy à la Walras (1926/1954). Indeed Walrasian general equilibrium is an explication of Smith’s (1776/1976) invisible hand. Smith (1776/1976, p. 145) provides another example of coordination in his allegation of a tendency of businessmen in any specific market attempting to collude when they have the chance.