Karl Popper's methodology highlights our scientific ignorance: hence the need to institutionalize open‐mindedness through controlled experiments that may falsify our fallible theories about the world. In his endorsement of “piecemeal social engineering,” Popper assumes that the social‐democratic state and its citizens are capable of detecting social problems, and of assessing the results of policies aimed at solving them, through a process of experimentation analogous to that of natural science. But we are not only scientifically but politically ignorant: ignorant of the (...) facts that underpin political debate, which are brought to our attention by theories that, as Max Weber emphasized, can be tested only through counterfactual thought experiments. Public‐opinion and political‐psychology research suggest that human beings are far too unaware, illogical, and doctrinaire to conduct the rigorous theorizing that would be necessary to make piecemeal social engineering work. F.A. Hayek realized that the public could not engage, specifically, in piecemeal economic regulation but failed to draw the conclusion that this was due to a specific type of political ignorance: ignorance of economic theory. (shrink)

In the methodology of theory construction, the concept of "intuitions" is commonly assigned a central role. This is especially true of philosophical and social scientific theories or rational human agency. An equally important trait of such accounts is the theorist's employment of "ideal models" or rational agency. It is frequently supposed that the concept of intuitions and the concept of ideal models link in such a way as to give rise to a coherent and load-bearing notion of "objective normativity." This (...) paper shows, with reference to a wide range of contemporary theories, that the employment of ideal models is otiose, and that the supposedly related concept of objective normativity is groundless. (shrink)

Although Schütz’s relationship with the Austrian school of economics was an intimate one, Lavoie and other Austrian scholars have challenged (a) Schütz’s characterization of praxeology as an objective science of subjective phenomena and (b) the ability of Schütz’s phenomenology, which emphasizes the subjective meanings of actors, to really make sense of spontaneous social orders. It is my contention, however, that Schütz can be adequately defended against both these charges. First, for Schütz, the claim that social science is an objective science (...) of subjective phenomena need not imply apodictic apriorism nor solipsism. Second, in spite of his emphasis on subjective meanings, the study of spontaneous social orders need not be difficult to justify. (shrink)

Under one understanding of marketing, this discipline focuses on the creation of customer value. Although nobody doubts today that value is subjective and it emerges from consumer judgment, the causality is less clear. Do producers bring about value, or do consumers receive ‘raw’ products that only attain value in their estimation? Or, do producers and consumers co-create value as much of contemporary marketing theory assumes? Recent works on value creation, the building of customer relationships, and the service-dominant logic are related (...) to insights derived from both Austrian schools of value theory. The emphasis on value as a ratio between perceived benefits and perceived costs may be seen as a continuation of Menger’s and Wieser’s work. The focus on relations as a category distinct from goods goes back to Böhm-Bawerk. And the service-dominant logic reflects insights developed both by Menger and by philosophers of the Brentano School. The direct influence of Austrian economics on business studies is small and is restricted to very few scholars. But the potential is great for a fruitful development of current approaches in marketing by drawing on insights from Austrian economics and, perhaps even more so, from Austrian philosophy. This paper defines the relations between the thought from economists and philosophers and presents examples for how cutting-edge marketing thinking may profit from both Austrian schools of value. (shrink)

Associate Professor | Director and President Department of Philosophy | Molinari Institute 6080 Haley Center, Auburn University Auburn AL 36849 USA email: [email protected] URL: praxeology.net..