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Information, Knowledge and the Close of Friedrich Hayek's System: A Comment

Author

Listed:
  • Elias L. Khalil

    (American Institute for Economic Research
    Vassar College)

Abstract

The paper argues that there are two separate orders implied in Hayek's open society: market order and liberal order. The distinction rests on a difference between, what is called here, information and knowledge. While information is about facts such as prices, knowledge expresses the agent's belief about the world. Hayek argues that market order is superior to planned order because information is inherently dispersed. He also argues that liberal order is superior to communal order because the development of knowledge is innately personal. The paper contends that Hayek's arguments cannot be conclusively derived from his theories of information and knowledge.

Suggested Citation

  • Elias L. Khalil, 2002. "Information, Knowledge and the Close of Friedrich Hayek's System: A Comment," Eastern Economic Journal, Eastern Economic Association, vol. 28(3), pages 319-341, Summer.
    • Handle: RePEc:eej:eeconj:v:28:y:2002:i:3:p:319-341
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume28/V28N3P319_341.pdf
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    References listed on IDEAS

    as
    1. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    2. P.D.F. Strydom, 1990. "Markets, Information and Liberty," South African Journal of Economics, Economic Society of South Africa, vol. 58(4), pages 242-249, December.
    3. Kavka, Gregory S., 1991. "Is Individual Choice Less Problematic than Collective Choice?," Economics and Philosophy, Cambridge University Press, vol. 7(2), pages 143-165, October.
    4. L. A. Boland, 1978. "Time in Economics vs. Economics in Time: The 'Hayek Problem.'," Canadian Journal of Economics, Canadian Economics Association, vol. 11(2), pages 240-262, May.
    5. Kornai, J, 1979. "Resource-Constrained versus Demand-Constrained Systems," Econometrica, Econometric Society, vol. 47(4), pages 801-819, July.
    6. Heiner, Ronald A, 1983. "The Origin of Predictable Behavior," American Economic Review, American Economic Association, vol. 73(4), pages 560-595, September.
    7. Buchanan, James M. & Vanberg, Viktor J., 1991. "The Market as a Creative Process," Economics and Philosophy, Cambridge University Press, vol. 7(2), pages 167-186, October.
    8. Bolton, Patrick & Farrell, Joseph, 1990. "Decentralization, Duplication, and Delay," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 803-826, August.
    9. repec:ucp:bkecon:9780226320625 is not listed on IDEAS
    10. Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-540, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Peter J. Boettke, 2002. "Information, Knowledge and the Close of Friedrich Hayek's System: A Comment," Eastern Economic Journal, Eastern Economic Association, vol. 28(3), pages 343-349, Summer.
    2. Elias Khalil, 2000. "Survival of the Most Foolish of Fools: The Limits of Evolutionary Selection Theory," Journal of Bioeconomics, Springer, vol. 2(3), pages 203-220, October.

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    More about this item

    Keywords

    Information; Knowledge; Friedrich Hayek;
    All these keywords.

    JEL classification:

    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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