Hayek and the Efficient Market Hypothesis are often seen as proposing a similar theory of prices. Hayek is seen as proposing to understand prices as information conveyer, incorporating inform...

The article focuses on the anti-naturalism of Menger and Mises. It presents a methodological approach formulated by both scholars as stemming from epistemological anti-naturalism and demonstrating similarities to social phenomenology. The article also discusses the development of the anti-naturalistic perspective on the basis of Hayek’s conception of sensory order. The latter allowed addressing the problem of validity of methodological dualism and established a sound foundation for the methodological approach of the Austrian School of Economics.

This paper studies the attempts (and failure) of Russian revolutionaries to mobilize the peasantry in the decade leading to the Soviet revolution of 1917. Peasants, who had been emancipated from serfdom only four decades earlier, in 1861, were still largely propertyless and poor. This would, at first glance, make them a ripe target for revolutionary activity. But peasants were largely refractory. We explain this lack of revolutionary spirit through two models. First, despite their lack of education and political awareness, the (...) peasants were rational in their refusal to participate in revolutionary activity; they engaged in a cost–benefit calculus which pushed them away from revolt and political organization. Second, based on the Wildavsky–Thompson cultural types, Russian peasants were largely fatalist: they believed they had no influence on the world, so it was not worth attempting to change it. This paper sheds light on some aspects of the Russian revolution, but also encourages further research in history and economic sociology on the interaction between culture and incentives. (shrink)

Recent work on Austrian philosophy has revealed, hitherto, unsuspected links between Vienna circle positivism on the one hand, and the thought of Franz Brentano and his circle on the other. the paper explores these links, casting light also on the Polish analytic movement, on the development of gestalt psychology, and on the work of Schlick and Neurath.

This book is a survey of the most important developments in Austrian philosophy in its classical period from the 1870s to the Anschluss in 1938. Thus it is intended as a contribution to the history of philosophy. But I hope that it will be seen also as a contribution to philosophy in its own right as an attempt to philosophize in the spirit of those, above all Roderick Chisholm, Rudolf Haller, Kevin Mulligan and Peter Simons, who have done so much (...) to demonstrate the continued fertility of the ideas and methods of the Austrian philosophers in our own day. For some time now, historians of philosophy have been gradually coming to terms with the idea that post-Kantian philosophy in the German-speaking world ought properly to be divided into two distinct traditions which we might refer to as the German and Austrian traditions, respectively. The main line of the first consists in a list of personages beginning with Kant, Fichte, Hegel and Schelling and ending with Heidegger, Adorno and Bloch. The main line of the second may be picked out similarly by means of a list beginning with Bolzano, Mach and Meinong, and ending with Wittgenstein, Neurath and Popper. As should be clear, it is the Austrian tradition that has contributed most to the contemporary mainstream of philosophical thinking in the Anglo-Saxon world. For while there are of course German thinkers who have made crucial contributions to the development of exact or analytic philosophy, such thinkers were outsiders when seen from the perspective of native German philosophical culture, and in fact a number of them found their philosophical home precisely in Vienna. When, in contrast, we examine the influence of the Austrian line, we encounter a whole series of familiar and unfamiliar links to the characteristic concerns of more recent philosophy of the analytic sort. As Michael Dummett points out in his Origins of Analytic Philosophy, the newly fashionable habit of referring to analytic philosophy as "Anglo-American" is in this light a "grave historical distortion". If, he says, we take into account the historical context in which analytic philosophy developed, then such philosophy "could at least as well be called "Anglo-Austrian" (1988, p. 7). Much valuable scholarly work has been done on the thinking of Husserl and Wittgenstein, Mach and the Vienna Circle. The central axis of Austrian philosophy, however, which as I hope to show in what follows is constituted by the work of Brentano and his school, is still rather poorly understood. Work on Meinong or Twardowski by contemporary philosophers still standardly rests upon simplified and often confused renderings of a few favoured theses taken out of context. Little attention is paid to original sources, and little effort is devoted to establishing what the problems were by which the Austrian philosophers in general were exercised -- in spite of the fact that many of these same problems have once more become important as a result of the contemporary burgeoning of interest on the part of philosophers in problems in the field of cognitive science. (shrink)

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)

In attempts to formulate a computational understanding of brain function, one of the fundamental concerns is the data structure by which the brain represents information. For many decades, a conceptual framework has dominated the thinking of both brain modelers and neurobiologists. That framework is referred to here as "classical neural networks." It is well supported by experimental data, although it may be incomplete. A characterization of this framework will be offered in the next section. Difficulties in modeling important functional aspects (...) of the brain on the basis of classical neural networks alone have led to the recognition that another, general mechanism must be invoked to explain brain function. That mechanism I call " binding." Binding by neural signal synchrony had been mentioned several times in the liter ature before it was fully formulated as a general phenomenon. Although experimental evidence for neural syn chrony was soon found, the idea was largely ignored for many years. Only recently has it become a topic of animated discussion. In what follows, I will summarize the nature and the roots of the idea of binding, especially of temporal binding, and will discuss some of the objec tions raised against it. (shrink)

Edgar Morin took an early lead within the French intellectual community, but also in comparison with parallel reflections in the English-speaking world, as far as critical discussion of the epistemology of the new sciences of complexity is concerned. His "complex thought" raises many intriguing questions and offers a dazzling synthesis of a wide range of fields, from physics to biology to psychology and the social sciences. However, Morin's road to complexity bypasses some crucial issues in philosophy and political economy. Therefore, (...) although Morin's insights remain invaluable, one has reasons to be a little skeptical about the exact nature of the reform of thought he has sketched out. (shrink)

In his book The Sensory Order, Hayek anticipates many of the central ideas behind what we now call the connectionist paradigm, and develops on this basis a theory of the workings of the human mind that extends the thinking of Hume and Mach. He shows that the idea of neural networks is can be applied not only in psychology and neurology but also in the sphere of economics. For the mind, from the perspective of The Sensory Order, is a dynamic, (...) relational affair that is in many respects analogous to a market process. The mind, as Hayek puts it, is a 'continuous stream of impulses, the significance of each and every contribution of which is determined by the place in the pattern of channels through which they flow' , so that the flow of representative neural impulses can be compared 'to a stock of capital being nourished by inputs and giving a continuous stream of outputs'. (shrink)

This paper undertakes an intersectional reading of visual art through theories of literary interpretation in Sanskrit poetics in close reading with Deleuze's notions of sensation. The concept of Dhvani – the Indian theory of suggestion which can be translated as resonance, as explored in the Rasa – Dhvani aesthetics offers key insights into understanding the mode in which sensation as discussed by Deleuze operates throughout his reflections on Francis Bacon's and Cézanne's works. The paper constructs a comparative framework to review (...) modern and classical art history, mainly in the medium of painting, through an understanding of the concept of Dhvani, and charts a course of reinterpreting and examining possible points of concurrence and departure with respect to the Deleuzian logic of sensation and his notions of time-image and perception. The author thereby aims to move art interpretation's paradigm towards a non-linguistic sensory paradigm of experience. The focus of the paper is to break the moulds of normative theory-making which guide ideal conditions of ‘understanding art’ and look into alternative modes of experiencing the ‘vocabulary’ of art through trans-disciplinary intersections, in this case the disciplines being those of visual art, literature and phenomenology. (shrink)

Theories of institutions can be classified into two broad approaches: institutions-as-rules and institutions-as-equilibria. According to the first approach, institutions are conceived as rules that guide the actions of individuals engaged in social interactions. On the other hand, the second approach views institutions as behavioral patterns. In order to have a complete picture of institutions, we need to take both approaches into consideration. Individuals construct mental models to produce expectations about institutions, while institutions make individual expectations relatively compatible. The main purpose (...) of this paper is to develop a general framework within which it is possible to analyze coevolution of individual mental models and institutions. (shrink)

This thesis argues for the fundamental importance of the opposition between holistic and reductionistic world-views in economics. Both reductionism and holism may nevertheless underpin laissez-faire policy prescriptions. Scrutiny of the nature of the articulation between micro and macro levels in the writings of economists suggests that invisible hand theories play a key role in reconciling reductionist policy prescriptions with a holistic world. An examination of the prisoners' dilemma in game theory and Arrow's impossibility theorem in social choice theory sets the (...) scene. The prisoners' dilemma epitomises the collective irrationality coordination problems lead to. The source of the dilemma is identified as the combination of interdependence in content and independence in form of the decision making process. Arrovian impossibility has been perceived as challenging traditional views of the relationship between micro and macro levels in economics. Conservative arguments against the possibility in principle of a social welfare function are criticised here as depending on an illicit dualism. The thesis then reviews the standpoints of Smith, Hayek and Keynes. For Smith, the social desirability of individual self-seeking activity is ensured by the 'invisible hand' of a god who has moulded us so to behave, that the quantity of happiness in the world is always maximised. Hayek seeks to re-establish the invisible hand in a secular age, replacing the agency of a deity with an evolutionary mechanism. Hayek's evolutionary theory, criticised here as being based on the exploded notion of group selection, cannot underpin the desirability of spontaneous outcomes. I conclude by arguing that Keynes shares the holistic approach of Smith and Hayek, but without their reliance on invisible hand mechanisms. If spontaneous processes cannot be relied upon to generate desirable social outcomes then we have to take responsibility for achieving this ourselves by establishing the appropriate institutional framework to eliminate macroeconomic prisoners' dilemmas. (shrink)

Whether understood as an adherence to the given, as an appeal to observe traditions, or as the wish to return to some bygone age, conservatism is bedevilled by paradoxes. The present essay attempts to overcome these paradoxes by putting forward a new conception of conservatism, identifying it as a worldview bent on the preservation of the totality of human knowledge with the aim of enhancing the survival chances of future generations. Conservatism thus understood targets the achievement of real knowledge. Hence (...) by necessity it must associate itself with a realist epistemology and ontology. I argue that any realism worthy of the name is common-sense realism, and that common-sense realism takes into account not merely the verbal level of cognition but also its visual and motor dimensions. The paper devotes special attention to Ludwig Wittgenstein, whose work has been intensively discussed in recent decades in the context both of conservatism and realism. (shrink)

This paper examines two paths by which F. A. Hayek’s work has influenced the cognitive theory of institutions: cognition and cultural evolution. It argues that there is a relationship between the sensory order and the social order. The explanation of social order begins with the human mind. This is illustrated with ideas relating to understanding culture from a cognitive viewpoint. Human cognition makes cultural evolution an endogenous process. The paper draws on ideas of co-evolution of individuals’ mental models and their (...) actions. Mental models can be modified by feedback from altered perceived reality as a consequence of peoples’ altered actions. A key to understanding cultural evolution is an understanding of how individuals modify their mental models. (shrink)

This volume is about the many ways we perceive. Contributors explore the nature of the individual senses, how and what they tell us about the world, and how they interrelate. They consider how the senses extract perceptual content from receptoral information. They consider what kinds of objects we perceive and whether multiple senses ever perceive a single event. They consider how many senses we have, what makes one sense distinct from another, and whether and why distinguishing senses may be useful. (...) They consider the extent to which the senses act in concert, rather than as discrete modalities, and whether this influence is epistemically pernicious, neutral, or beneficial. They explore both the familiar five sense modalities and other candidate sense modalities, including a sense for flavour, inner senses (e.g., a sense for pain), and various senses that may result from using sensory substitution devices. Contributors often represent competing views, and the methods they deploy sometimes differ from one essay to the next—with some drawing upon the sciences and engineering and others relying upon conceptual analysis. All contributors agree, nonetheless, that traditional theorizing about the senses is hampered by a neglect of the senses other than vision, and by the misconception that vision is a passive receptacle for an image thrown by a lens. And many contributors believe that it is unduly restrictive to think of perception as a collation of contents provided by individual sense modalities; they think that to understand perception properly, we need to build into our accounts the idea that the senses work together. The ambition of the volume is to begin to develop better paradigms for understanding the senses, and thereby to move toward a better understanding of perception. (shrink)

The economists of the Austrian School count among the most consistent supporters of methodological individualism, but they were for the most part strongly opposed to clearly anti-holist trends such as constructivism, reductionism, and positivism. This article discusses why the sort of methodological individualism defended by the Austrians could not, for interconnected reasons, be rendered compatible with any one of these philosophical trends. The manner in which the Austrians managed to reconcile their analysis of economic mechanisms with a strictly subjectivist approach (...) is especially considered. The discussion also underscores some ambiguous dimensions of the debate between holism and individualism. (shrink)

F.A. Hayek’s theory of cultural evolution has often been regarded as incompatible with his earlier works. Since it lacks an elaborated theory of individual learning, we try to back his arguments by starting with his thoughts on individual perception described in his Theory of Mind. With a focus on the current discussion concerning biological and cultural selection theories, we argue his Theory of Mind leads to two different stages of societal evolution with well-defined learning processes, respectively. The first learning process (...) describes his Morality of Small Groups, in which Hayek’s thoughts coincide with learning theories that do not allow for the perception of behavior from outside the group. His second stage of cultural evolution, the Open Society, involves a different kind of learning behavior. We connect this notion with a model of local interaction in which the cultural learning aspect is addressed by a distinction between interaction and learning neighborhoods. This results in a situation in which individuals change their strategy and —depending on the radius of interaction and learning neighborhood—eventually may adopt new strategies that lead to higher payoffs. (shrink)

University of North Carolina at Greensboro Most approaches to the philosophy of the natural and social sciences are basedon completed scientific investigations. However, there are many importantcases in science in which testing is incomplete. These cases are termed suspendedtrials and are particularly significant in biomedical and allied health fields. Initially,the authors' interest in suspended trials was piqued by a controversialmethod for assisting autistic children known as facilitated communication. Thisarticle examines facilitated communication and other examples of suspendedtrials from the perspective of (...) an economics of science and game theory. Themodel is consistent with recent evolutionary approaches to the philosophy ofthe natural and social sciences and with recent contributions to an economicunderstanding of science. Key Words: clinical trials • innovative therapies • economics of science • suspended trials • facilitated communication • economics of clinical research. (shrink)

The paper begins by providing a game-theoretic reconstruction of Gilbert’s (1989) philosophical critique of Lewis (1969) on the role of salience in selecting conventions. Gilbert’s insight is reformulated thus: Nash equilibrium is insufficiently powerful as a solution concept to rationalize conventions for unboundedly rational agents if conventions are solutions to the kinds of games Lewis supposes. Both refinements to NE and appeals to bounded rationality can plug this gap, but lack generality. As Binmore (this issue) argues, evolutive game theory readily (...) explains the origin of conventional behavior, but that is not Lewis’s project. Gilbert’s critique is generalized by reference to Bacharach’s (2006) work on team reasoning in games. The paper then argues that although Lewis’s account of the rationalization of conventions is shown by the reconstruction of Gilbert’s critique to be incomplete, Gilbert is wrong to conclude that classical (‘eductive’) game theory lacks the resources to explain conformity to conventions among people. A game-theoretic account of the dynamics of socialization, based on Ross’s (2005, 2006) idea of ‘game determination’, rationalizes choices of conventional strategies in overlapping generations contexts, provided agents are products of evolutionary selection and know that other players are also such products. (shrink)

A sensible quality is a perceptible property, a property that physical objects (or events) perceptually appear to have. Thus smells, tastes, colors and shapes are sensible qualities. An egg, for example, may smell rotten, taste sour, and look cream and round.1,2 The sensible qualities are not a miscellanous jumble—they form complex structures. Crimson, magenta, and chartreuse are not merely three different shades of color: the first two are more similar than either is to the third. Familiar color spaces or color (...) solids capture, to a greater or lesser extent, these relations between the colors. The same goes for sensible qualities perceived in other modalities: middle C, high C, and D are not merely three different notes, and the taste of lemons, oranges, and sugar cubes are not merely three different tastes. How can this structure of appearance be explained? One idea is that sensible qualities are of two sorts: basic and derived. The basic sensible qualities are the building blocks from which the derived sensible qualities can be.. (shrink)

The computational view of mind rests on certain intuitions regarding the fundamental similarity between computation and cognition. We examine some of these intuitions and suggest that they derive from the fact that computers and human organisms are both physical systems whose behavior is correctly described as being governed by rules acting on symbolic representations. Some of the implications of this view are discussed. It is suggested that a fundamental hypothesis of this approach is that there is a natural domain of (...) human functioning that can be addressed exclusively in terms of a formal symbolic or algorithmic vocabulary or level of analysis. Much of the paper elaborates various conditions that need to be met if a literal view of mental activity as computation is to serve as the basis for explanatory theories. The coherence of such a view depends on there being a principled distinction between functions whose explanation requires that we posit internal representations and those that we can appropriately describe as merely instantiating causal physical or biological laws. In this paper the distinction is empirically grounded in a methodological criterion called the " cognitive impenetrability condition." Functions are said to be cognitively impenetrable if they cannot be influenced by such purely cognitive factors as goals, beliefs, inferences, tacit knowledge, and so on. Such a criterion makes it possible to empirically separate the fixed capacities of mind from the particular representations and algorithms used on specific occasions. In order for computational theories to avoid being ad hoc, they must deal effectively with the "degrees of freedom" problem by constraining the extent to which they can be arbitrarily adjusted post hoc to fit some particular set of observations. This in turn requires that the fixed architectural function and the algorithms be independently validated. It is argued that the architectural assumptions implicit in many contemporary models run afoul of the cognitive impenetrability condition, since the required fixed functions are demonstrably sensitive to tacit knowledge and goals. The paper concludes with some tactical suggestions for the development of computational cognitive theories. (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)

To understand the work of economic theorists it is often helpful to situate it in the context of the rhetorical strategy they were pursuing. Two ontologically distinct rhetorical strategies of laissez-faire may be distinguished by the way they articulate the individual interest with the general interest. A reductionist approach, exemplified by Friedman and Lucas, suggests that the properties and behaviour of an entity can be understood in terms of the properties and behaviour of the constituent lower-level components, taken in isolation. (...) The contrary – holistic – stance, viewing the qualities of phenomena as products of the inter-relations between their component parts, is characteristic of Smith and Hayek. While the reductionist approach naturally issues in a laissez- faire policy prescription, the holistic account is more problematic. Reconciling a holistic ontology with a reductionist policy prescription requires the intercalation of a black box, such as an evolutionary process or the invisible hand of a deity. (shrink)

This article attempts a self-clarification of practice theory by providing a genetic history of ‘practice’ as a figure in social thought. This locates two different versions of practice theory in Marx’s ‘practical question’ and Hobbes’ ‘Kingdom of Darkness’, respectively, and shows how both historically comprise a practical critique of testing reason. This article examines how the practical critique performs a dialectic of politicization and depoliticization that finds family resemblances and paradoxical alignments between the political left and right. The article evaluates (...) the strength of the practical critique and asks whether it results in a power politics with both left and right versions. (shrink)

ABSTRACT: The economists of the Austrian School count among the most consistent supporters of methodological individualism, but they were for the most part strongly opposed to clearly anti-holist trends such as constructivism, reductionism, and positivism. This article discusses why the sort of methodological individualism defended by the Austrians could not, for interconnected reasons, be rendered compatible with any one of these philosophical trends. The manner in which the Austrians managed to reconcile their analysis of economic mechanisms with a strictly subjectivist (...) approach is especially considered. The discussion also underscores some ambiguous dimensions of the debate between holism and individualism. (shrink)

In this paper, we draw attention to the epistemological assumptions of market liberalism and standpoint theory and argue that they have more in common than previously thought. We show that both traditions draw on a similar epistemological bedrock, specifically relating to the fragmentation of knowledge in society and the fact that some of this knowledge cannot easily be shared between agents. We go on to investigate how market liberals and standpoint theorists argue with recourse to these similar foundations, and sometimes (...) diverge, primarily because of normative pre-commitments. One conclusion we draw from this is that these similarities suggest that market liberals ought to, by their own epistemological lights, be more attentive towards various problems raised by feminist standpoint theorists, and feminist standpoint theorists ought to be more open to various claims made by market liberals. (shrink)

Neural activity and social activity share close parallels, particularly the fact that spontaneous adaptations are paramount in both realms. Environmental pressures require organisms and societies to adapt to new and uncertain situations. Adaptations create, respectively, stronger neural and social networks that may, in turn, make the system more resilient to future uncertainties—but only if the adaptations are beneficial to the system.