Prices and knowledge: A market-process perspective

More documents

Recommendations

Info

Notes 13316 An implication of this will be that decentralized bureaucracies are also targetsof the entrepreneurial criticisms of planning. For an argument in favour ofcentral planning that is largely based on an unawareness of both distinctionsmade here, see Wanless (1987:52–68).17 Coase (1937:388) also quotes D.H.Robertson’s description of firms in themarket as ‘islands of conscious power in this ocean of unconscious cooperation…’.18 See Hurwicz’s (1984:423–4) brief criticism.19 For a more recent paper adopting a similar approach, see Camacho andPersky (1988:367–80).20 Hayek (1973:49) describes this as ‘guiding the actions of individuals by rulerather than specific commands’.21 This distinction is also present when Coase (1937:387) says that ‘aneconomist thinks of the economic system as being co-ordinated by the pricemechanism and society becomes not an organisation but an organism’. For acriticism of the use of the term ‘organism’ for this purpose rather than‘spontaneous order’, see Hayek (1973:52–4).22 For Mises (1949:304–5) a ‘manager’ will have ‘entrepreneurialfunctions…assigned to him within a limited and precisely determined sphereof action’. For several comments of relevance to this section, see, in general,Mises (1949:303–8).23 The term ‘free’ here does not mean ‘costless’ or ‘equally costly to all’. Itmeans ‘the freedom of potential competitors to discover and to move toexploit’ perceived profit opportunities (Kirzner 1985a:142). See alsoArmentano (1982).6 Conclusions1 See, for example, Gilad (1981, 1982).2 This appears to be hinted at in Mises (1949:353).
ReferencesAkerlof, G.A. (1970) ‘The market for “lemons”: quality uncertainty and themarket mechanism’, Quarterly Journal of Economics 84 (August): 488–500.Almon, C. (1963) ‘Central planning without complete information at the center’,in G.B.Dantzig (ed.) Linear Programming and Extensions, Princeton, N.J.:Princeton University Press.Ando, A. (1979) ‘On the contributions of Herbert A.Simon to economics’,Scandinavian Journal of Economics 81:83–93.Armentano, D.T. (1982) Antitrust and Monopoly: Anatomy of a Policy Failure,New York: Wiley.Arrow, K.J. (1962) ‘Economic welfare and the allocation of resources forinvention’, in R.Nelson (ed.) The Rate and Direction of Inventive Activity:Economic and Social Factors, Princeton, N.J.: Princeton University Press forNational Bureau of Economic Research.—— (1974) ‘Limited knowledge and economic analysis’, American EconomicReview 64:1–10. Reprinted in K.J.Arrow, Collected Papers, Vol. 4: TheEconomics of Information, Cambridge, Mass.: Harvard University Press,1984.—— (1984) ‘Information and economic behavior’, in K.J.Arrow, CollectedPapers, Vol. 4: The Economics of Information, Cambridge, Mass.: HarvardUniversity Press.—— (1986) ‘Rationality of self and others in an economic system’, Journal ofBusiness 59 (October): s385–s389.Bartley III, W.W. (1985) ‘Knowledge is a product not fully known to itsproducer’, in Kurt R.Leube and Albert H.Zlabinger (eds) The PoliticalEconomy of Freedom: Essays in Honor of F.A.Hayek, Munich: PhilosophiaVerlag.Baumol, W.J. (1968) ‘Entrepreneurship in economic theory’, AmericanEconomic Review 58 (May): 64–71.—— (1979) ‘On the contributions of Herbert A.Simon to economics’,Scandinavian Journal of Economics 81:74–82.Baumol, W.J. and Quandt, R.E. (1964) ‘Rules of thumb and optimally imperfectdecisions’, American Economic Review 54 (March): 23–46.Boland, L.A. (1981) ‘On the futility of criticizing the neoclassical maximizationhypothesis’, American Economic Review 71 (December): 1031–6.
Page 2:
Prices and knowledge
Page 6:
ContentsAcknowledgmentsvii1 Introdu
Page 10 and 11:
Chapter 1IntroductionIn recent deca
Page 12:
Introduction 3to changes, and not a
Page 15 and 16:
6 Prices and knowledgeOUTLINE OF TH
Page 17 and 18:
Chapter 2A theory of the market pro
Page 19 and 20:
10 Prices and knowledgeexistence of
Page 21 and 22:
12 Prices and knowledgebehavior of
Page 23 and 24:
14 Prices and knowledgedisequilibri
Page 25 and 26:
16 Prices and knowledgeresources kn
Page 27 and 28:
18 Prices and knowledgeproduce, bet
Page 29 and 30:
20 Prices and knowledgeimportant in
Page 31 and 32:
22 Prices and knowledgeauxiliary’
Page 33 and 34:
24 Prices and knowledgeSome writers
Page 35 and 36:
26 Prices and knowledgeall practica
Page 37 and 38:
28 Prices and knowledgemarket parti
Page 39 and 40:
30 Prices and knowledgeprices fully
Page 41 and 42:
32 Prices and knowledgeoptimal allo
Page 43 and 44:
34 Prices and knowledgeAn example.
Page 45 and 46:
36 Prices and knowledgeIn this case
Page 47 and 48:
38 Prices and knowledgeequilibrium.
Page 49 and 50:
40 Prices and knowledgethose return
Page 51 and 52:
42 Prices and knowledgeprices in th
Page 53 and 54:
44 Prices and knowledgeThe informat
Page 55 and 56:
46 Prices and knowledgeinformationa
Page 57 and 58:
48 Prices and knowledgeas devices f
Page 59 and 60:
50 Prices and knowledgeIt is probab
Page 61 and 62:
52 Prices and knowledgetrue that in
Page 63 and 64:
54 Prices and knowledgeknowledge st
Page 65 and 66:
56 Prices and knowledgereached in r
Page 67 and 68:
58 Prices and knowledgecorrespond t
Page 69 and 70:
60 Prices and knowledgetake it away
Page 71 and 72:
62 Prices and knowledgecritics of t
Page 73 and 74:
64 Prices and knowledgeto work out
Page 75 and 76:
66 Prices and knowledgebehavior in
Page 77 and 78:
68 Prices and knowledgerich’ worl
Page 79 and 80:
70 Prices and knowledgeThus the sim
Page 81 and 82:
72 Prices and knowledgeSimon calls
Page 83 and 84:
74 Prices and knowledgebelieves tha
Page 85 and 86:
76 Prices and knowledgeIf what is u
Page 87 and 88:
78 Prices and knowledgeoccurring wi
Page 89 and 90:
80 Prices and knowledgecomputationa
Page 91 and 92: 82 Prices and knowledgemaximizing a
Page 93 and 94: 84 Prices and knowledgeframework de
Page 95 and 96: 86 Prices and knowledgeAgain Mises
Page 97 and 98: 88 Prices and knowledgepoint that
Page 99 and 100: 90 Prices and knowledgeand B’s ta
Page 101 and 102: 92 Prices and knowledgecoordination
Page 103 and 104: 94 Prices and knowledgeFinally, the
Page 105 and 106: 96 Prices and knowledgeBefore prese
Page 107 and 108: 98 Prices and knowledgeas will be s
Page 109 and 110: 100 Prices and knowledgeapples in l
Page 111 and 112: 102 Prices and knowledgeThe identif
Page 113 and 114: 104 Prices and knowledgeAs with Sim
Page 115 and 116: 106 Prices and knowledgerealized th
Page 117 and 118: 108 Prices and knowledgedeliberate
Page 119 and 120: 110 Prices and knowledgeframework s
Page 121 and 122: 112 Prices and knowledgeMarkets and
Page 123 and 124: 114 Prices and knowledgeassigned an
Page 125 and 126: 116 Prices and knowledgemain virtue
Page 127 and 128: 118 Prices and knowledgechapter 3 t
Page 129 and 130: 120 Prices and knowledgenoticed, wo
Page 131 and 132: 122 Prices and knowledgeAs a by-pro
Page 133 and 134: 124 Notesmoney, the behavior of arb
Page 135 and 136: 126 Notes14 It is not clear why the
Page 137 and 138: 128 Notes39 See also Hahn (1984a:11
Page 139 and 140: 130 Notestheories of cognition held
Page 141: 132 Notes3 Economists, Nelson and W
Page 145 and 146: 136 ReferencesGilad, B. (1981) ‘A
Page 147 and 148: 138 ReferencesKihlstrom, R.E. and M
Page 149 and 150: 140 ReferencesOsana, H. (1978) ‘O
Page 151 and 152: 142 Referencesfrontiers of analytic
Page 153 and 154: 144 IndexCercone, N. 79change: and
Page 155 and 156: 146 Index61, 118; on costless infor
Page 157 and 158: 148 Indexmisinformation 55, 57mista
Page 159: 150 IndexVeljanowski, C.G. 43voting
show all

Prices and knowledge: A market-process perspective

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?