Postmodernism is often characterized, among other things, as the belief in the unattainability of objective truth and as a rejection of teleological and reductionist, or essentialist, forms of thought. For instance, in his provocative book The Rhetoric of Economics, Donald McCloskey sketches the implications for economic methodology of Richard Rorty's rejection of the modernist quest for Truth, as represented by various rationalist and empiricist epistemologies. McCloskey describes modernist methodology as displaying a desire to predict and control, a search for objective–;which (...) often means measurable–;knowledge, and an attempt to develop a value-free inquiry, among other characteristics. This “methodological correctness,” McCloske suggests, is discredited by the postmodern dissatisfaction with traditional epistemology. Thus, in place of the modernist belief in a rule-guided path to truth, he advocates a “free market” approach to knowledge, in which participants in the variety of theoretical conversations agree to be earnest and listen politely to one another. (shrink)

Mark Pennington’s Robust Political Economy is a systematic exposition of a framework for analyzing institutional performance. The Robust Political Economy framework evaluates institutions according to their ability to solve knowledge and incentive problems. On grounds of robustness, Pennington combines insights from Austrian market-process theory and public-choice theory to defend classical liberalism from several compelling critiques. These include theories of market failure in economics; communitarian, deliberative-democratic, and liberal-egalitarian theories of justice; and concerns with social capital, domestic and international poverty, and ecology.

How management philosophy is conceived depends on if pragmatism is acknowledged or not! After having been under the main domination of management science both research and education has until recently widened its scope from a decision-making to an action-perspective. It seems to be a recent reconnection to pragmatism that makes the 2011 Carnegie report propose to rethink management in liberal arts terms, whilst the vastly influential 1959 Carnegie Pierson report distanced itself from American pragmatism thus focusing on decisions and forgetting (...) actions. Actions may contain decisions and choices but contain more than that. A decision-perspective explains by causal inference modelling choices as calculated or programmed. The action-perspectives strive at understanding intentions of agents by philosophical interpretations of action stories. It is less limited to finding the logics for constructing worlds, to paraphrase Herbert Simon’s favorite philosopher Rudolf Carnap, than embarking on plausible, although not certain, reconstructions of intentions giving meaning to action stories. This can be illustrated by turning to Elizabeth Anscombe’s Wittgensteinian investigation of intentions as Aristotelian syllogistic reasoning. Her constant analytical care to defend a philosophy of action against metaphysical assumptions and taken-for-granted “psychologisms” shows that an action-perspective is as analytic as ever one of decision-making. What differs is that the latter seems constantly attracted by programming inquiry by “scientific methodology” whilst the latter is charmed by philosophical approaches to action welcoming fascinating conundrums, enigmas and human goofs in the reality of managerial practice. Management science wants to reduce management to logics, programs and models for formal decision making whereas management philosophy is closer to spotting the artfully entrepreneurial in actions. The latter points in the direction of engineering tools, the former to appreciate the toys of management as artwork. Finally the argument of Georg Henrik von Wright helps us see that the two are philosophically compatible; for in a pragmatically inspired management philosophy actions may well contain decisions. (shrink)

ABSTRACTThis article shows how Hayek’s understanding of ‘unlimited democracy’ was influenced by the work of Carl Schmitt. It goes on to make the case that ordoliberal ideas informed his suggestions for limiting democracy, made in response to Schmitt’s work. A number of authors have drawn attention to the influence of Schmitt on Hayek’s thought. Similarly, the ordoliberal relationship has been explored. However, these two influences must be read alongside each other in order to arrive at a full understanding of Hayek’s (...) deep ambivalence towards democracy and how that developed from the 1930s through to the 1970s. Finally, the article makes the case that the decisive influence on Hayek’s later authoritarian turn was not the work of Schmitt, as certain authors have argued, but ordoliberal interpretations of dictatorship. It also argues that Hayek’s model constitution is informed by fundamental ordoliberal concerns. (shrink)

An epistemic account of the circumstances of justice allows one to make three important claims about the Humean and Rawlsian ‘standard account’ of those circumstances. First, and contrary to Hume,...

In the methodology of scientific research programs (MSRP) there are important features on the problem of prediction, especially regarding novel facts. In his approach, Imre Lakatos proposed three different levels on prediction: aim, process, and assessment. Chapter 5 pays attention to the characterization of prediction in the methodology of research programs. Thus, it takes into account several features: (1) its pragmatic characterization, (2) the logical perspective as a proposition, (3) the epistemological component, (4) its role in the appraisal of research (...) programs, and (5) its place as a value for scientific research. -/- The notion of “novel facts” is highly relevant in his conception, where several aspects are involved: the directions of novel facts, the different kinds of novelty, and the transition from six possible options of “novel facts” to four choices. Thereafter, the prediction of novel facts as the criterion of appraisal is considered. On the one hand, this requires analyzing the theoretical, empirical, and heuristic possibilities of appraisal; and, on the other, whether there is an overemphasis on the role of prediction in methodology of scientific research programs. As a consequence, there is an analysis of Lakatos’ criterion of appraisal in MSRP and economics. (shrink)

Die vorliegende Schrift unternimmt eine Revision des vorherrschenden Bildes der Rolle und der Konzeptionen von Moral und Ethik im Wiener Kreis. Dieses Bild wird als zu einseitig und undifferenziert zurückgewiesen. Die Ansicht, die Mitglieder des Wiener Kreises hätten kein Interesse an Moral und Ethik gezeigt, wird widerlegt. Viele Mitglieder waren nicht nur moralisch und politisch interessiert, sondern auch engagiert. Des Weiteren vertraten nicht alle die Standardauffassung logisch-empiristischer Ethik, die neben der Anerkennung deskriptiv-empirischer Untersuchungen durch die Ablehnung jeglicher normativer und inhaltlicher (...) Ethik und der Verfechtung eines extremen Nonkognitivismus geprägt ist. Am meisten entspricht die Standardauffassung den Ansichten Rudolf Carnaps, weniger bereits jenen Karl Mengers, Otto Neuraths oder Philipp Franks. Am weitesten weichen Moritz Schlick, Victor Kraft sowie Herbert Feigl von der Standardauffassung ab. Entgegen dem herkömmlichen Bild weltabgewandter Logiker und Metaethiker wurde im Wiener Kreis sogar Angewandte Ethik betrieben, und dies bereits unter diesem Namen. Neben den ethischen Hauptthemen und Ansichten der jeweiligen Philosophen in ihrer Entwicklung im Rahmen ihres persönlichen und kulturellen Kontextes zeigt die Untersuchung, dass allen Ansätzen eine aufgeklärte und humanistische Version von Moral und Ethik gemeinsam ist. Dieser wissenschaftliche Humanismus, der sich schon in der Programmschrift Wissenschaftliche Weltauffassung. Der Wiener Kreis findet, liegt jedoch in verschiedenen Ausprägungen vor. Was die Abweichungen von der Standardauffassung wesentlich betrifft, ist ihre unterschiedliche Auffassung von Moral als gemeinsames oder individuelles Unternehmen. Carnap führt ein extremer Individualismus zu einem extremen Nonkognitivismus, in dem ihm Menger folgt. Bei Schlick ist die Lage zweideutig, was sich in unterschiedlichen Moralbegriffen widerspiegelt. Bei Kraft und Feigl tritt das Verständnis von Moral als gemeinschaftlich geteilte Praxisform klar hervor. Auf der Basis eines gemeinsamen Begriffs des moralisch Guten, der auch eine Sachkomponente enthält, ist eine Verständigung über moralische Fragen möglich. Von einem extremen Nonkognitivismus kann dort nicht mehr die Rede sein. Mit diesen Ergebnissen verbietet es sich, dem Wiener Kreis allgemein eine Ablehnung normativer Ethik und einen extremen Nonkognitivismus zuzuschreiben. Eine systematische Ethik, die Moral als Gemeinschaftspraxis begreift, steht einigen im Wiener Kreis näher, als das vorherrschende Bild suggerieren möge. Wer meint, mit engem Bezug zur Tradition des Wiener Kreises nur Carnap folgen zu können und Ethik als suspektes Unternehmen betrachten zu müssen, irrt. Ethik war in der Tradition Analytischer Philosophie nicht immer so marginalisiert, wie sie es in manchen ihrer Teilrichtungen heute noch ist und Gegner(innen) der Analytischen Philosophie vorwerfen. Die vorliegende Untersuchung liefert die nötige Revision einer verfänglichen Fehlentwicklung. (shrink)

Business research and teaching institutions play an important role in shaping the way businesses perceive their relations to the broader society and its moral expectations. Hence, as ethical scandals recently arose in the business world, questions related to the civic responsibilities of business scholars and to the role business schools play in society have gained wider interest. In this article, I argue that these ethical shortcomings are at least partly resulting from the mainstream business model with its taken-for granted basic (...) assumptions such as specialization or the value-neutrality of business research. Redefining the roles and civic responsibilities of business scholars for business practice implies therefore a thorough analysis of these assumptions if not their redefinition. The takenforgrantedness of the mainstream business model is questioned by the transformation of the societal context in which business activities are embedded. Its value-neutrality in turn is challenged by self-fulfilling prophecy effects, which highlight the normative influence of business schools. In order to critically discuss some basic assumptions of mainstream business theory, I propose to draw parallels with the corporate citizenship concept and the stakeholder theory. Their integrated approach of the relation between business practice and the broader society provides interesting insights for the social reembedding of business research and teaching. (shrink)

The present essay aims to account for F.A. Hayek's oft-noted 'turn' away from technical economics to concerns of a more philosophical nature. In particular, the paper seeks an explanatory principle that reconciles various elements of both continuity and discontinuity in Hayek's intellectual development, especially with respect to the evolution of his arguments concerning economic fluctuations. The essay uncovers such an explanatory principle in Hayek's own methodology of sciences of complex phenomena. According to this principle, an inquirer who confronts phenomena too (...) complex for adequate explanation on the basis of current knowledge must move to a more general, albeit less testable, explanation. This is precisely what occurred in the evolution of Hayek's thought concerning trade cycles. The concluding section considers the implications of the argument for the extensive secondary literature on Hayek's 'transformation'. (shrink)

ABSTRACT There are, at present, at least two basic forms of market economy: one that tends to be open to innovative ideas; the other that tends to be more oriented to social services. The normative significance of these two “models” of market society—roughly speaking, the American and the Continental models—can best be appreciated by noticing that in the first model, entrepreneurship, and participation in the economy more generally, can be a major source of satisfaction for the entrepreneurs and employees, independently (...) of their financial compensation. In the second model, the economy is primarily a means to the end of the goods it produces. Although the second type may be as suited to producing goods as the first type, it has fallen short—for reasons that economists now understand—in generating employee engagement and the satisfactions of exploration and self‐realization. (shrink)

This essay presents a skeleton of a potential conceptual framework for human flourishing in a free society. Its aim is to present a diagram that illustrates the ways in which its topics relate to one another and why they do. It argues for a plan of conceptualization rather than for the topics themselves. It emphasizes the interconnections among the components of the schema presented. It sees an essential interconnection between objective concepts, arguing that all of the disciplines of human action (...) can be integrated into a paradigm of human flourishing based on the nature of man and the world. (shrink)

Austrian economics starts out from the thesis that the objects of economic science differ from those of the natural sciences because of the centrality of the economic agent. This allows a certain a priori or essentialistic aspect to economic science of a sort which parallels the a priori dimension of psychology defended by Brentano and his student Edmund Husserl. We outline these parallels, and show how the theory of a priori dependence relations outlined in Husserl’s Logical Investigations can throw light (...) on the Austrian account of entrepreneurship. (shrink)

Our goal in this article is first to give a broad outline of some of Hume’s major positions to do with justice, sympathy, the common point of view, criticisms of social contract theory, convention and private property that continue to resonate in contemporary political philosophy. We follow this with an account of Hume’s influence on contemporary philosophy in the conservative, classical liberal, utilitarian, and Rawlsian traditions. We end with some reflections on how contemporary political philosophers would benefit from a more (...) explicit consideration of Hume. (shrink)

F. A. Hayek's realistic economic theory has been replaced by the formalistic use of equlibrium models that bear little resemblance to reality. These models are as serviceable to the right as to the left: they allow the economist either to condemn capitalism for failing to measure up to the model of perfect competition, or to praise capitalism as a utopia of perfect knowledge and rational expectations. Hayek, by contrast, used equilibrium to show that while capitalism is not perfect, it contains (...) error‐correcting institutions that bring it closer to perfection than is intuitively apparent. (shrink)

From the perspective of a realist philosophy of social science, the recent explosion of criticisms of mainstream economics, including reinvigorated Austrian criticism, provides what seems like a rich opportunity to join what are too often disjoined disciplinary interests and inquirers, and also to extend the arguments not only as regards the realist theory of social science, but also as regards the implications of this approach for economics. I begin with a minimum sketch of key features of realist philosophy of science (...) as I understand it. The central difference turns on the role and nature of explanation and of theory, between what is frequently termed ‘deductivism’, and on an alternative in which explanation requires the articulation of a causal mechanism, for example, the mechanism provided by molecular chemistry that gives us an understanding of oxidation. I take the position that in social science, explanation requires social causal mechanisms. I consider the Austrian contribution from this point of view and conclude with some hints regarding how the foregoing bears on our understanding of capitalism and socialism. (shrink)

Marx believed that what most clearly distinguished him and Engels from the nineteenth-century French socialists was that their version of socialism was “scientific” while the latters' was Utopian. What he intended by this contrast is roughly the following: French socialists such as Proudhon and Fourier constructed elaborate visions of a future socialist society without an adequate understanding of existing capitalist society. For Marx, on the other hand, socialism was not an idea or an ideal to be realized, but a natural (...) outgrowth of the existing capitalist order. Marx's historical materialism is a systematic attempt to discover the laws governing the inner dynamics of capitalism and class societies generally. Although this theory issues in a prediction of the ultimate triumph of socialism, it is a commonplace that Marx had little to say about the details of post-capitalist society. Nevertheless, some of its features can be discerned from his critical analysis of capitalism and what its replacement entails. (shrink)

This is a comprehensive anthology of works concerning the nature of economics as a science, including classic texts and essays exploring specific branches and schools of economics. Apart from the classics, most of the selections in the third edition are new, as are the introduction and bibliography. No other anthology spans the whole field and offers a comprehensive introduction to questions about economic methodology.

A number of writers have drawn on Hayek’s epistemic defence of market institutions to argue that free-markets and tort law are best placed to overcome the knowledge problems associated with the environmental sphere. This paper argues to the contrary, that this Austrian School approach itself suffers from significant knowledge problems. The first of these relates to the ability of Austrian economics to assign victim compensation and the second to the difficulty of establishing causation in complex environmental problems. The paper will (...) also show how alternative approaches may not suffer from these epistemic challenges and are better placed to overcome them. (shrink)

Friedrich von Hayek’s classical liberalism argued that free markets allow individuals the greatest opportunity to achieve their ends. This paper develops an internal critique of this claim. It argues that once externalities are introduced, the forms of economic knowledge Hayek thought to undermine government action and orthodox utilitarianism also rule out relative welfarist assessments of more or less regulated markets. Given the pervasiveness of externalities in modern economies, Hayek will frequently be unable to make comparative welfarist claims, or he must (...) relax his epistemic assumptions and allow for greater government action than his classical liberalism would wish to accept. (shrink)

Within the planning discourse two poles have materialised over the last decades: a participatory ideal guided by substantive rationality, opposed to an algorithmic governmentality subordinated to instrumental reason. This rift within socialist thought is also observable when it comes to the discovery of needs. The paper understands this discovery procedure primarily as a forecasting problem and demonstrates how many authors dedicated to a participatory planning process call for consumers to write down their desires in the form of wish lists. As (...) a response to this epistemically questionable discovery procedure, the state of the art in capitalist demand-forecasting at enterprises like Amazon is presented, where machine-learning algorithms excel at modelling interrelated time series on a global level by extrapolating demand patterns in real-time. The paper closes with a proposal to reconfigure this predictive apparatus for socialist ends and raises questions concerned with the political implications of centralising decision-making in black-box algorithms. (shrink)

Public policy makers are calling for all university students to learn entrepreneurial competencies to prepare them to be productive citizens in an unpredictable future. Far more than simply starting up businesses, entrepreneurship is increasingly seen as a student-centric pedagogical technique (teaching through entrepreneurship) for helping students learn desperately needed foundational skills and attitudes such as curiosity, creativity, opportunity spotting, grit, resilience, proactivity, adaptability, empathy, self-efficacy, motivation, and tolerance for uncertainty and risk. This article describes generational trends that make this education (...) increasingly important and provides a Comprehensive Framework for Entrepreneurship Education (CFEE) to help implement best practices to achieve measurable Assurances of Learning (AoL) results at the institutional, degree program, and individual course levels. (shrink)

The book’s core argument is that an artificial intelligence that could equal or exceed human intelligence—sometimes called artificial general intelligence (AGI)—is for mathematical reasons impossible. It offers two specific reasons for this claim: Human intelligence is a capability of a complex dynamic system—the human brain and central nervous system. Systems of this sort cannot be modelled mathematically in a way that allows them to operate inside a computer. In supporting their claim, the authors, Jobst Landgrebe and Barry Smith, marshal evidence (...) from mathematics, physics, computer science, philosophy, linguistics, and biology, setting up their book around three central questions: What are the essential marks of human intelligence? What is it that researchers try to do when they attempt to achieve "artificial intelligence" (AI)? And why, after more than 50 years, are our most common interactions with AI, for example with our bank’s computers, still so unsatisfactory? Landgrebe and Smith show how a widespread fear about AI’s potential to bring about radical changes in the nature of human beings and in the human social order is founded on an error. There is still, as they demonstrate in a final chapter, a great deal that AI can achieve which will benefit humanity. But these benefits will be achieved without the aid of systems that are more powerful than humans, which are as impossible as AI systems that are intrinsically "evil" or able to "will" a takeover of human society. (shrink)

Entrepreneurship education plays a mediating moderating role in independent entrepreneurship, especially for the fresh graduates where entrepreneurial knowledge charms. Based on the mediating effect model, this study explores the correlation between three factors and independent entrepreneurship. A set of hypotheses was established by investigating the theoretical background within the field of interest. Such hypotheses were later assessed by an online-offline mix study conducted among graduates. The result found that entrepreneurship theory-based courses can promote independent entrepreneurship, but entrepreneurship practice training surprisingly (...) failed to promote. Entrepreneurial opportunity identification mediated only between theory-based courses and independent entrepreneurship. The findings found could be highly beneficial in organizing entrepreneurship syllabus, scientifically arranging a theory-based course, and practicing a training course. Moreover, it could be further developed into a pedagogical model. (shrink)

The Austrian School seems to remain outside the debate on the realism of economic models. In principle, given the association of the term “model” with the Chicago School, and also for understanding that Hayek had critized the model of perfect competition as unrealistic. Even though in previous opportunities we showed how the theory of market as a process could be understood as the model of the Austrian School, and that Hayek’s criticism to the model of perfect competition was not so (...) much of unrealistic, but that it was wrongly stated (Zanotti & Borella, 2015), and we developed the ontological foundation of the model in Hayek’s thought (Borella, 2019), in this paper we will show how it is posible to compare pattern predictions with models, and how in this sense, the Austrian School, also seems to get near, even without sufficiently noticing it, to the discussion on models in economics and their realism. Keywords: Realism of models- Hayek- pattern predictions-models . (shrink)

We study a case that applies hermeneutics to social sciences, in particular to the Austrian School of economics. We argue that an inaccurate treatment of hermeneutics contributed to an epistemological downgrade of the Austrian School in the economic scientific community. We discuss hoe this shortcoming can be fixed and how a proper hermeneutic application to the Austrian school explains why this school of thought is neither positivist nor postmodern.

Friedrich Hayek was a fervent advocate of the methodological specificity of the social sciences. However, given his contact with Karl Popper, several historians and philosophers have characterized his final position as Popperian, that is, a position that would have accepted the unity of scientific method. A closer look at Hayek's philosophy and Popper's own intellectual course shows that such a thesis is based on misconceptions that can be overcome by taking the Hayekian concept of 'spontaneous order' as the foundation of (...) a methodology immune to any kind of methodological monism. (shrink)

Critical theory has long resisted the notion that an “invisible hand” can operate within the real social dynamics of a free market. But despite the most radical desires of the socially critical imagination, the optimization of that “spontaneous order” or depersonalized way of ordering things known as “the economy” has become the dominant playing field and decisive electoral issue of modern politics. Within this broad contemporary context, Michel Foucault made a strange theoretical intervention that, to this day, continues to baffle (...) readers. During a lecture, he argued that Adam Smith’s invisible hand was, after all, truly and purposively, that is, for technical rather than ideological reasons, “invisible.” This article argues that there is a counter-positivism or tactical irony contained within the logic of such a controversial thesis; namely, that when one acknowledges that the principle of economic competition encourages an efficient self-organizing effect at all times, regardless of context, one is also immediately in a position to appreciate why the art of government should always maintain its political primacy over the spontaneous order of the market. (shrink)

In the debate on realism of models in economics, the Austrian School and Hayekin particular, seem to have, in a certain way, remained outside. Assuming neoclassical models asunrealistic, the theory of the market as a process looks like a more realistic proposal. However, oneof the fundamental issue s in Hayek’s dissent is not so much the unrealism of the assumptions, but that the market equilibrium theory was not correctly raised, especially with regards to the perfectknowledge assumption. Despite this, in this (...) setting and in line with a previous paper (Zanotti & Borella, 2015), we will argue that Hayek’s spontaneous order may be understood as the Austrian School’s “model”, assuming Mäki’s MISS version of models (Models as Isolations and Surrogate Systems) and emphasizing the place of the ontological foundation of Hayek’s proposal when assessing his model. (shrink)

In this paper we will analyze Lawson’s criticism of Hayek for not having transcended positivism. We will distinguish two levels in the criticism: methodological and ontological. So far as methodological criticism is concerned, we consider that Lawson’s positivist interpretation of Hayek regarding the method in economics is not the only possible, and we will try to develop another one. With respect to ontological criticism, we will state that though it is possible to understand Hayek as an ontological positivist, since he (...) assumes an ontological individualism, this fact would not necessarily lead to positivism -question to which Lawson seems to bring Hayek closer after 1955- but a moderate ontological individualism could be assigned to Hayek founded on a realistic interpretation of Husserl’s phenomenology. (shrink)

Tento lnek se zabv Hayekovou teori mysli, kterou pedstavil ve svm pravdpodobn nejobtnjm dle Sensory Order. Prvn st nastoluje fundamentln otzku o vztahu vnjho svta a obrazu, kter si o tomto svt vytv nae mysl. Nsleduje zkoumn zkladnch nstroj a pedpoklad, na kterch Hayek svou teorii vystavl. Jdrov st se pokou nastnit hlavn odpovdi, kter z Hayekovy teorie mysli plynou. Zvren sti pot strun roziuj mon vyuit tohoto dla ve filosofii vdy, v rozdlnm chpn prodnch a spoleenskch vd, v pojet (...) svobodn vle i v aplikaci na konkrtn oblasti ekonomie, ke kterm Hayek nejvce pispl. (shrink)

This paper uses a game-theoretic framework to formalize the Hayekian notion of equilibrium as the compatibility of plans. To do so, it imposes more structure on the conventional model of strategic games. For each player, it introduces goals, goal-oriented strategies, and the goals’ probabilities of success, from which players’ payoffs are derived. The differences between the compatibility of plans and Nash equilibrium are identified and discussed. Furthermore, it is shown that the notion of compatibility of plans, in general, differs from (...) the notion of Pareto efficiency. Since the compatibility of plans across all players can rarely be achieved in reality, a measurement is introduced to determine various degrees of plan compatibility. Several possible extensions and applications of the model are discussed. (shrink)

The terms ‘knowledge economy’ and ‘knowledge capitalism’ have been used with increasing frequency since the 1990s as a way of describing the latest phase of capitalism in in the process of global r...

This article discusses the challenges raised by the inclusion of evolutionary elements in the theories of Carl Menger, Joseph Schumpeter, and Friedrich Hayek. Each adopted an idiosyncratic position in terms of method of inquiry, focus, and general message. The breadth of the topics and phenomena they cover testifies to the great variety of interpretations and potential uses of evolutionary concepts in economics. Menger, who made no reference to Darwin’s theory, advanced an “organic” view of the emergence of social institutions. Schumpeter (...) elaborated an original theory of industrial development based on the recurrent emergence and dissemination of innovations. Hayek adopted the biological notion of group selection and made it the central element in his theory of cultural evolution and the rise of the free market. The chapter concludes with a preliminary evaluation of the possible role that evolutionary theorizing might play in the future development of Austrian economics. (shrink)

One of the distinctive features of the Austrian School of Economics has been its emphasis on the entrepreneur as central to the market process. One 20th century Austrian whose work is normally not thought of as making a major contribution to the Austrian theory of entrepreneurship is Ludwig Lachmann. However, a careful reading of his 1956 book Capital and its Structure can tease out a theory of the function of the entrepreneur that is distinctly different from that of Israel Kirzner, (...) yet still clearly situated in an Austrian conception of the market process. In this contribution, I want to emphasize two points that have been raised by previous work on Lachmann, but not explored in any detail. The first is that Lachmann’s conception of entrepreneurship is deeply bound up with the need to engage in monetary calculation thanks to the heterogeneity of capital and uncertainty of the future. For Lachmann, the key function of the entrepreneur is to “specify” the uses of capital goods. Such specification requires the use of money prices and what Mises called monetary calculation. The second contribution is to offer more detail on the way in which entrepreneurs both creatively specify and re-specify the uses of their capital goods in response to profit and loss signals. The constant shuffling and reshuffling of capital goods, of which coming up with new products or new twists to old ones are a part, is the essence of Lachmann’s implicit vision of entrepreneurship. For Lachmann, entrepreneurship is bound up with resource ownership and deployment through the creation and revision of plans in ways that are much more active than Kirzner’s conception of the entrepreneur. (shrink)

Studie má za cíl představit strukturu Hayekova evolucionismu. Argumentace postupuje v několika krocích: Východiskem je historicko- systematická expozice způsobu, jakým evoluční teorie ovlivnila Hayekovu filosofii, především s ohledem na periodizaci vývoje jeho myšlení a systematické odlišení explanans a explanandum v rámci jeho teorie vědy. Dále je rozebírán způsob, jakým Hayek rozvíjí svoji metodologii vědy. V této souvislosti je argumentováno ve prospěch teze, že Hayekovo pojetí metodologického dualismu je důsledkem ovlivnění evoluční teorií. Zároveň je evoluční teorie představena jako nástroj vysvětlení, konkrétně (...) pak tzv. vysvětlení vzorce. Následně je představeno Hayekovo pojetí společnosti v kontextu kulturní evoluce. Společnost je interpretována jako řád jednání a je kladen důraz na Hayekovo vnímání společnosti jako řádu vyvíjejícího se společně s lidskou myslí. Na základě těchto předpokladů je v poslední části rozvinuto Hayekovo pojetí mysli. Toto pojetí vychází z konekcionistické pozice. Dále argumentuji proti tradičnímu pohledu na Hayekovu filosofii jako rozvíjení Kantovy filosofie. Závěr rekapituluje základní body Hayekova evolucionismu. (shrink)

Do markets generate a “just” wage? The answer to this question will depend upon the particular theory of the market that the political economist employs. When comparing actual labor markets with the neoclassical theory of competitive equilibrium as its normative benchmark, Joseph Heath argues that factor pricing is orthogonal to normative issues such as distributive justice. We argue that Heath’s conclusion, though not invalid, follows from a similar normative benchmark of equilibrium, one that evaluates factor pricing without taking into account (...) the institutional conditions within which factor prices emerge. Though indeed classical political economists and early neoclassical economists failed to deliver an explicit theory of distributive justice, what Heath overlooks is that implicit to their understanding of the market process was an institutional theory of distributive justice. (shrink)

This paper aims to contribute to the ongoing discussion on adherence to social norms. It considers insights from multiple research traditions in an effort to explain how individual learning and action are connected to social norms. One strand of philosophical tradition holds that non-representational learning and skillful coping carried out unconsciously are underestimated by both scientific and philosophical traditions. The present research combines this tradition with the literature on the evolution of social norms and suggests that experienced individuals in a (...) society adhere to social norms better than novice agents do. We explain this phenomenon by unconscious and non-representational cognitive processes. This framework is then used to investigate population-level outcomes of individual learning. (shrink)

Some recent arguments for paternalist government interventions have been based in empirical results in psychology and behavioral economics that would seem to show that adult human beings are far removed from the ideals of rationality presupposed by much of philosophical and economic theory. In this paper it is argued that we need to move to a different conception of human decision-making competence than the one that lies behind that common line of philosophical and economic thinking, and which actually still lies (...) in the background of some of these recent approaches to paternalist interventions. An alternative picture of human decision-making competence is outlined and four criteria for identifying areas where paternalist interventions have a basic moral and political legitimacy are then identified on the basis of this picture. (shrink)

According to Margaret Gilbert’s collective epistemology, we should take attributions of beliefs to groups seriously, rather than metaphorically or as reducible to individual belief. I argue that, similarly, attributions of belief to markets ought to be taken seriously and not merely as reports of the average beliefs of market participants. While many of Gilbert’s purported examples of group belief are better thought of as instances of acceptance, some collectives, such as courts and markets, genuinely believe. Such collectives enact truth-aimed processes (...) that are beyond the control of any single individual. These processes produce beliefs that are distinct from any individual belief and do not merely report the “average” or “majority” view of the group. In the case of markets, beliefs are indicated by prices, though it is often difficult to infer beliefs from prices and those inferences are almost always uncertain. Reliabilism is the best available standard of justification for market beliefs. In some cases market beliefs are reliable and prove to be true. Thus, in some cases markets can know. (shrink)

The aim of this paper is to contribute to the development of a theory of economic freedom. In this endeavor, we build our framework on the Hayekian notion of freedom because it explicitly embodies the obvious link between freedom and the state: freedom is an absence of state coercion except for that which enforces abstract, general rules known beforehand. We derive two propositions from this Hayekian thesis and elaborate on them, leading to a categorization of government actions from the viewpoint (...) of economic freedom in which the criterion against which coercive governmental actions must be evaluated is the rule of law, meaning a government’s reliance on general, abstract rules. As an implication, our framework allows us to argue for the imperative differentiation between “efficiency” and “economic freedom” as two separate criteria against which government actions can and must be evaluated. We also show that our framework may help explain the process through which economic freedom enhances growth. (shrink)

Bruce Caldwell has disputed a number of points in my earlier account of the development of the Austrian school of economics from Carl Menger to Ludwig von Mises and F.A. Hayek. The issues in contention regard Friedrich von Wieser’s intellectual affiliation with Hayek and his influence on the formation of Hayek’s economic thought; Wieser’s status as a general equilibrium theorist; and the reason for Hayek’s early flirtation with general equilibrium theory. In this article I argue that Hayek was a self-conscious (...) adherent of the Wieserian tradition and remained so even after he received the Nobel Prize in 1974 and that he distinguished between this tradition and the Böhm-Bawerkian tradition followed by Ludwig von Mises. I also contend that Wieser used the construction of a general equilibrium economy subject to a single will as both a normative benchmark by which to appraise the performance of the real-world market economy and as an analytical tool to explain the formation of market prices. Finally, I argue that Hayek concerned himself with the problems of the Wieser-type general equilibrium economy beginning with his earliest writings as a professional economist, years before he began to focus on the theoretical problems of money and the business cycle.Bruce Caldwell a discuté un certain nombre de points de mon article récent sur le développement de l’école autrichienne d’économie de Carl Menger en passant par Ludwig von Mises et F.A. Hayek. Les controverses concernant l’affiliation intellectuelle de Hayek vis-à-vis de Friedrich von Wieser et l’influence de ce dernier sur la pensée économique de Hayek, le statut de Wieser en tant que théoricien de l’équilibre général, et les raisons pour lesquelles le jeune Hayek flirta avec la théorie de l’équilibre général.Dans cet article je défends la thèse selon laquelle Hayek était conscient du fait qu’il s’inscrivait dans la tradition Wieserienne et qu’il l’était toujours même après sa réception du prix Nobel en 1974 et quand il fît la distinction entre cette tradition et la tradition inaugurée par Böhm-Bawerk et poursuivie par Mises. L’article affirme aussi que Wieser utilisa la construction d’une économie en équilibre général sujette à une volonté unique à la fois comme standard normatif pour évaluer les performances des marchés dans le monde réel et comme outil analytique pour expliquer la formation des prix marchands. Enfin, l’article argumente que Hayek s’intéressa aux problèmes relevant d’une économie en équilibre général à la Wieser dans ses premiers écrits en tant qu’économiste et cela bien avant qu’il ne se concentrât sur les problèmes théoriques de la monnaie et du cycle des affaires. (shrink)

Bastiat is widely acknowledged as the most effective advocate of free markets, but his status as an economist is widely denied even by prominent Austrian economists who share his literary style and support for liberty. In particular, his theories of value and exchange have been attacked as a labor theory of value. Bastiat is exonerated here from these charges and is shown to fully oppose objective theories of value and to fully endorse the gains from free exchange. In addition, Bastiat (...) viewed economics as a science based on deductive reasoning and he vehemently opposed the use of mathematics. He thus was an important precursor of the Austrian school of economics.Bastiat est très reconnu comme étant le défenseur le plus éloquent du libre marché. Cependant, son statut en tant qu’économiste est amplement nié, et ce, même par les économistes Autrichiens éminents qui sont en accord avec son style littéraire et sa défense de la liberté. En particulier, ses théories de la valeur et de l’échange, considérées comme participant de la théorie de la valeur-travail, ont fait l’objet de critiques. Cet article exonère Bastiat de ces critiques et démontre que ses théories s’opposent radicalement aux théories objectives de la valeur : Bastiat avait une compréhension parfaite des gains découlant des échanges libres. De plus, Bastiat envisageait l’économie comme une science reposant sur un raisonnement déductif et s’opposait résolument à l’emploi des mathématiques. En ce sens, il était un précurseur important de l’école Autrichienne d’économie. (shrink)

In this article, we draw upon the philosophy of critical realism to reflect upon issues concerning discovery processes and opportunity development. First, paradoxes in the relationship between opportunity discovery and creativity are identified and explained. Second, the question of how to investigate opportunities is discussed and a solution informed by critical realism presented whereby three new types of discovery are identified and defined for empirical investigation. Using critical realism to augment entrepreneurial opportunity theory, we propose that discovery processes have significance (...) beyond discovery theory and can be considered revealing for theories of opportunity development more generally. We conclude with conceptual and practical comment on the importance of ontological theorising for entrepreneurship. (shrink)

This paper explores the link between the case for indeterminism in an epistemological fashion and methodological individualism in the thought of two defenders of both stances: Karl Popper and Friedrich Hayek. The relation between these issues has not received much attention before and even less so with regard to these two thinkers. First, Popper’s defence of indeterminism from an epistemic viewpoint and Hayek’s views about the indeterminism of action are studied. Second, their positions about methodological individualism are considered. Finally, several (...) comparative questions are aired. (shrink)

ABSTRACTJack Knight and James Johnson argue in The Priority of Democracy that democracy should be theorized and justified pragmatically: Democratic deliberations should be given a central coordinating role in society not because they realize any particular abstract ideal, but because they would elicit the information needed to solve real-world problems. However, Knight and Johnson rely on a naïve economic understanding of knowledge that assumes implausibly that individuals know what they need to know and need only aggregate thier separate beliefs. It (...) is precisely because we may not know what we need to know that we need to continually test our ideas. Contra Knight and Johnson, moreover, we ought to accept that our ability to interpret social experiments properly is questionable. A pragmatic approach to social inquiry, therefore, ought to investigate what beliefs political actors actually bring to collective decisions rather than how theoretically perfect beliefs ought to be elicited and aggregated. (shrink)