Knowledge and Meliorism in the Evolutionary Theory of F. A. Hayek (original) (raw)
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This article offers a critical appraisal of two distinct Hayekian theories, namely the theory of the spontaneous order of actions, and the theory of spontaneous evolution of social institutions. The purpose is to show how Hayek and some commentators and disciples have mistakenly conflated these two distinct theories, and have thereby generated confusion over many other related crucial issues. The aim is therefore to clearly distinguish the two theories in order to identify the real message of Hayek’s teaching, and clear the way for a more useful exploration of self-organising social phenomena.
Order without equilibrium: a critical realist interpretation of Hayek's notion of spontaneous order
Cambridge Journal of Economics, 1996
I f t he various entities that comprise a system fit together so that the system displays order as opposed to mere chaos, some principle of organisation must then be in operation. When the system under investigation is the socioeconomic system, the following question is warranted: what is the principle of organisation in operation ensuring that socioeconomic order as opposed to chaos occurs? There appear to be two generic principles on offer, each one rooted in a philosophical and methodological position. The first principle of organisation, and the one typically adopted by most economists, is equilibrium. Hahn treats equilibrium as the 'central organising idea' of neoclassical theory (1973, p. 1). Since there are far too many notions of equilibrium to deal with individually, 2 I shall make use of the following generic, working definition given by Dow:
Friedrich Hayek's theory of spontaneous order: two problems
Constitutional Political Economy, 1997
The paper finds Hayek's basic building block, the natural/artificial contrast, to be illuminating. But the manner in which Hayek classifies entities according to the contrast generates two major problems in his socioeconomic theory. First, Hayek's concept "design" confuses the technical construction of, e.g., a chair with the deliberate organization of division of labor within the firm. Second, Hayek's notion "spontaneous order" fails to note two kinds of natural order -firms and markets.
Retrospectives: Friedrich Hayek and the Market Algorithm
Journal of Economic Perspectives, 2017
Friedrich A. Hayek (1899–1992) is known for his vision of the market economy as an information processing system characterized by spontaneous order: the emergence of coherence through the independent actions of large numbers of individuals, each with limited and local knowledge, coordinated by prices that arise from decentralized processes of competition. Hayek is also known for his advocacy of a broad range of free market policies and, indeed, considered the substantially unregulated market system to be superior to competing alternatives precisely because it made the best use of dispersed knowledge. Our purpose in writing this paper is twofold: First, we believe that Hayek's economic vision and critique of equilibrium theory not only remain relevant, but apply with greater force as information has become ever more central to economic activity and the complexity of the information aggregation process has become increasingly apparent. Second, we wish to call into question Hayek&#...
«Introduction–Hayek's grand research programme»
1994), Hayek, Co-ordination and Evolution: His legacy …, 1994
Many of the institutions on which human achievements rest have arisen and are functioning without a designing and directing mind . . . the spontaneous collaboration of free men often creates things which are greater than their individual minds can ever fully comprehend'.
Hayek vs. Polanyi: Spontaneity and Design in Capitalism
This paper studies the concept of spontaneous order, its development through many schools of economic thought and its importance for the society of our days. We begin to discuss this idea looking at the work of Friedrich Hayek, since he proposed the most well-known conceptualization of spontaneous order, which came out of the economic calculation debate of the 1930s; this led to his research about the role of the information on the economy, which is dispersed through the economy. The most mature version of his work can be found in "Law, Legislation and Liberty", in which he also discusses practical applications. As a counterpoint to the Hayekian perspective, we include some criticisms of this concept, and accordingly we look at the contributions of Karl Polanyi on this issue. Polanyi diverged from Hayek about the role of the market in the society, as he proposed that societies protect themselves from the invasion of the market in the other social spheres, through the process he called "double movement". For the last part, we conclude that, despite some relevant objections, it is fruitful to maintain the concept of spontaneous order, stressing that Polanyi´s double movement itself can be considered a manifestation of the spontaneous order. On the other hand, we emphasize that this spontaneous order at some moment needs to be institutionalized with some rules, so we consider that anarchism, in its libertarian or its leftist perspectives, are self-defeating proposals.