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That theory contradicts with what Schelling is trying to say in his paper "Micromotives and Macrobehavior". Both theories start the same but the outcomes are different. According to Smith society is intentionally benefited from one's following his self interest. Schelling states that it is possible that the outcome of such selfish activities could be negative and even harmful for society...
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Schelling states that it is possible that the outcome of such selfish activities could be negative and even harmful for society. In his paper he gives a variety of examples to support his point of view.
It seems to me that both of those authors are right in their views, Schelling just develops the "invisible hand" theorem to a different extent...
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