In promoting spontaneous orders – orders that evolve in a process of cultural evolution – as “efficient,” “beneficial,” and “advantageous,” Friedrich A. Hayek (1899-1992) has often been attributed the belief that there is something desirable about them. For this reason, he has been accused of committing the naturalistic fallacy, that is, of trying to derive an “ought” from an “is.” It appears that Hayek was..

Hayek Revisited consists of papers presented at four conferences held by the Ludwig von Mises Institute between 1993 and 1996 ‘in honour of Hayek’s] ideas’ xi), and, according to the front flap, the purpose of the volume is ‘to celebrate’, ‘to celebrate … and pay testament to’ Hayek’s contribution. The very first phrase of the Introduction speaks of “The awesome scope of..

By means of a consideration of Whitman (1998) the present paper considers the meanings of ‘Panglossianism’ and the relation between group and individual levels in evolution. It establishes the connection between the Panglossian policy prescription of laissez-faire and the mistaken evolutionary theory of group selection. Analysis of the passages in Hayek cited by Whitman shows that, once these passages are taken in context, and once the appropriate meaning of the term ‘Panglossian’ has been clarified, they fail to defend Hayek from (...) this charge, but, on the contrary, confirm that Hayek was, indeed, ‘a Panglossian evolutionary theorist’. (shrink)

This paper shows how business ethics as a concept may be approached from a cognitive viewpoint. Following F. A. Hayek''s cognitive theory, I argue that moral behavior evolves and changes because of individual perception and action. Individual moral behavior becomes a moral rule when prominently displayed by members of a certain society in a specific situation. A set of moral rules eventually forms the ethical code of a society, of which business ethics codes are only a part. By focusing on (...) the concept of "limited" or "dispersed knowledge" that underlies the cognitive approach, I show that universal ethical norms that should lead to defined outcomes cannot exist. This approach moreover shows the limits of deliberate rule-setting. Attempts to deliberately impose universal ethical rules on societies may turn out to be harmful for societal development and lead to an abuse of governmental power. (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 hisTheory of Mind. With a focus on the current discussion concerning biological and cultural selection theories, we argue hisTheory 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)

logical failure or contradiction by a fact. Intuition alone can decide between two competing theories agreeing with the facts. (ibid. ...

Hayek's social theory presupposes that rules are unintended consequences of individual actions. This essay explicates one kind of Hayekian explanation of that claim. After noting the kinds of rules that Hayek believes are subject to such a theory, the essay distinguishes three functional explanations advocated by Hayek. He combines one of these functional explanations with an invisible hand explanation. A schema suitable for constructing invisible hand-functional evolutionary theories is employed to outline this combination.

One of the most vexing problems in contemporary liberal democratic theory and practice is the relation between ethics and economics. This article presents a way of bringing this relation into focus in the terms offered by two incredibly influential but too-often neglected twentieth-century political philosophers: John Dewey and Friedrich Hayek. I describe important points of contact between Dewey and Hayek that enable us to begin the project of reframing contemporary debates between ethical egalitarians and economic libertarians. Cautiously recognizing these commonalities (...) whilst remaining attentive to persisting differences enables us to better approach the difficult relations between morals and markets. Specifically, I argue for a Deweyan combination of fair trade and free trade motivated by taking seriously a Hayekian caution about states. The result is a democratic theory that importantly refuses to attribute too much political efficacy to the quintessential liberal distinction between public and private. (shrink)

The Road to Serfdom (Hayek 1944)2 is without a doubt the book that made Friedrich Hayek world famous. But one must immediately add that Hayek the trained economist was far from being satisfied with this situation, at least at the beginning. “I have long resented”, writes Hayek, “being more widely known by what I regarded as a pamphlet for the time than by my strictly scientific work.” But he adds immediately: “After reexamining what I wrote then in the light of (...) some thirty years’ further study of the problems then raised, I no longer do so” (Hayek 1976: xxiv-xxv). (shrink)

Throughout his writings, Hayek has emphasized that a "scientistic prejudice" is working as a bad steering factor in the research for sound theories in the general field of social sciences, and especially in economics. Notwithstanding Hayek's criticism, most contemporary economists still think that they must imitate methods of physical and biological sciences in order to do good and valid science. While Hayek was first vehemently reproving this methodological choice in his early writings (for example, Hayek 1952), he was afterwards convinced (...) by Popper, as he himself acknowledges (see Hayek 1967) that the scientific method social scientists sought to transpose into their own research field was mere illusion. Consequently, Hayek rejected the confirmationist approach to economic theories and adopted a strict falsificationist one (this is very clear in the Nobel Memorial Lecture: see Hayek 1974). (shrink)

1.- Introduction: articulating Hayek’s evolutionary argument with his socialist calculation dispute I completely agree with Bruce Caldwell (Caldwell 1988b: 74-75; Caldwell 1988a) that it is precisely within the conceptual and theoretical framework of the debate on the possibility of socialist calculation that Hayek definitively breaks with the standard static equilibrium approach to the market economy and finds out that the central problem of economics is related to the complex question of social coordination. From the Hayekian standpoint, this problem cannot be (...) solved without articulating a genuine theory about the role and the use of knowledge in society.1 This forms the hard core of what I will call the Hayekian theoretical argument. But one can find a much different kind of argument in Hayek, i.e. an evolutionary argument. I will characterize this argument as the Hayekian empirical argument. Hayek first exposed the essential elements of this genuine argument systematically in Law, Legislation and Liberty (see especially Hayek 1973). But in Hayek’s last book (Hayek 1988), socialism is still analyzed from this evolutionary standpoint , and as such socialism is considered by Hayek to be the major problem not only of economic theory but also, more globally, of Western civilization itself. In that book, published the year before the Soviet Union collapsed, Hayek showed himself to be absolutely confident that economic analysis could prove that socialism was not only a social blunder and a political failure, but above all a formidable scientific error. My reading of Hayek’s work is that this evolutionary argument has to be linked to the first one, which is of a more theoretical nature as far as economics is concerned. Indeed, while the evolutionary argument puts forward a completely different conceptual framework tightening the theoretical argument, it first of all displaces the gist of Hayek’s claim against socialism.. (shrink)

Hayek is, with Mises, one the prominent Austrian economists who took part in the historical “socialist calculation debate” of the 1930s. After recalling precisely what Mises’s crucial argument against socialism was (socialism means the abolition of market prices which are necessary for real rational economic decisions to be taken in production), this paper goes on to show what Hayek’s main argument was (state planning of the economy is impossible because no super-brain can have all the necessary knowledge to be economically (...) efficient). I will further show that, while this last argument is theoretical, Hayek has also an argument about the preeminence of competitive economy from an evolutionary standpoint, which is an empirical question and thus forms a less conclusive argument. In the second part of this paper, I will summarize how Myrdal explains in his 1960 book, and from a completely different angle, how state intervention and planning historically occurred—and continues to work—in our Western Capitalist Welfare States. Myrdal’s account is explicitly presented by him as having empirical import, but also strong normative content. Hayek, on the contrary, argues that the efficiency of state planning is a problem for economists to solve on exclusively scientific grounds. My purpose is to show important divergences between these two economic viewpoints and to sketch a philosophical appraisal of both. (shrink)

What is typical of Hayek's challenge concerning socialism is that he always maintained that this question was for economic theory to decide. Sketching the historical background of what has come to be known as the "socialist calculation debate" (section 1), I try to link this debate with the Menger-Wieser Zurechnungsproblem and show that the Pareto-Barone approach has determined the theoretical form of this economic controversy. I then go on to explore Hayek's 'inapplicability' argument (section 2) and try to show how (...) it is related to Mises' 'logical impossibility’ argument. This is followed by an examination of Hayek's second argument (section 3), which I refer to as 'the evolutionary argument'. I display what is the specific gist of this argument and connect it tightly to the first one. I then discuss certain methodological issues (section 4) pertaining to the allegedly radical difference between Mises' arguments and Hayek's tentative refutation of socialism. Here I challenge the received view that Mises' based his case on the 'impossibility in principle' of socialism, whereas Hayek's own position was to challenge the 'possibility in practice' of a centrally planned economy. This reading (especially by Willem Keizer) of Hayek's contribution to the debate seems to me misguided and unwarranted. I attempt to propose, on the contrary, that both lines of reasoning involve the same kind as arguments since both of them should be interpreted as impossibility theorems. Finally (section 5) I try to give an appropriate and adequate answer to the question raised in the title of this paper. (shrink)

Of the many twentieth-century Austrian intellectuals who have left an indelible mark, Friedrich Hayek is without a doubt one of the most multidimensional, and for this reason also one of the most difficult to comprehend. Who was he, in fact? He presented himself as a fourth-generation economist trained in the famous “Austrian School” which Carl Menger had founded in 1871. Indeed, Hayek may well be its last representative, given his own opinion that after him the Austrian School had more or (...) less ceased to exist. (shrink)

Hayek's epistemic arguments against planning were aimed not just against socialism but also the tradition of ecological economics. The concern with the physical preconditions of economic activity and defence of non-monetary measures in economic choice were expressions of the same rationalist illusion about the scope of human knowledge that underpinned the socialist project. Neurath's commitment to physicalism, in natura calculation and planning typified these errors. Neurath responded to these criticisms in unpublished notes and correspondence with Hayek. These highlighted the epistemological (...) premises his work shared with Hayek's, representing a response to Hayek from Hayek's own assumptions. This paper examines the cogency and continuing relevance of the arguments in this debate. (shrink)

By exploring the writings of Mandeville, Hume and Smith, this book offers a critique of Hayek's theory of cultural evolution and explores the roots of his powerful defence of liberalism.

Hayek's and Mises's argument for the impossibility of socialist planning is once again popular. Their case against socialism is predicated on an account of the nature of knowledge and social interaction. Hayek refined Mises's original argument by developing a philosophical anthropology which depicts individuals as tacitly knowledgeable rule-followers embedded in a 'spontaneous order' of systems of rules. Giddens, whose social theory is informed by his reading of Wittgenstein, has recently added his sociological support to Hayek's 'epistemological argument' against socialism. With (...) the aid of an interpretation of Wittgenstein which emphasizes his philosophy of praxis , I attempt to 'deconstruct' Giddens's and Hayek's 'picture' of tacit knowledge and rule-following on which their argument against socialism is predicated. (shrink)

Ever since the collapse of Soviet-bloc socialism, and the associated breakup of the Soviet Union itself, it has been accepted by the vast majority of political economists that Friedrich A. Hayek and his fellow Austrians, notably his mentor, Ludwig von Mises, were the unequivocal victors in the famous “socialist calculation debate” that had raged for a good seven decades. It was over. The anti-socialist, Austrian position had won. Market capitalism was triumphant in both theory and practice. The combination of lack (...) of incentives and inevitably dispersed and asymmetric information had doomed command central planning of economies, especially in an increasingly complicated modern world economy (Rosser and Rosser, 2004, Chap. 3). (shrink)

This book offers a distinctive treatment of Hayek's ideas as a "research program". It presents a detailed account of aspects of Hayek's intellectual development and of problems that arise within his work, and then offers some broad suggestions as to ways in which the program initiated in his work might be developed further. The book discusses how Popper and Lakatos' ideas about "research programs" might be applied within political theory. There then follows a distinctive presentation of Hayek's intellectual development up (...) to The Road to Serfdom, together with critical engagement with his later ideas. The discussion draws on a full range of his writings, makes use of some neglected earlier work on social theory and law, and also draws on archival material. This book should appeal to anyone with an interest in Hayek's work, as well as to those with a concern for twentieth century intellectual history. (shrink)

In this article I summarize Friedrich Hayek’s cultural group selection theory and describe the evidence gathered by current cultural group selection theorists within the behavioral and social sciences supporting Hayek’s main assertions. I conclude with a few comments on Hayek and libertarianism.

Volume 13 in the Major Conservative and Libertarian thinkers series focuses on F.A. Hayek, The influential member of the Austrian School of Economics.

Friedrich von Hayek is mostly known as a staunch critic of naturalist fallacy. It is claimed in the article that having been heavily influenced by Epicurus, he commited an identical error that he himself criticized. This opinion is based on Hayek’s application of Ernst Mach mind-body dualism criticism, Epicurean theory of [...].