|
|
| (16 intermediate revisions by 3 users not shown) |
| Line 1: |
Line 1: |
| == Spontaneous Order and The Evolution of Behaviors ==
| | '''[[David Hume]]''' |
|
| |
|
| ==Major Contributors==
| |
|
| |
|
| | '''[[Adam Ferguson]]''' |
|
| |
|
| '''[['''Adam Smith''']]'''
| |
|
| |
|
| | '''[[Adam Smith]]''' |
|
| |
|
|
| |
|
| '' "..every individual necessarily labors to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good" '' Adam Smith, The Wealth of Nations | | '''[[Jean-Baptiste Say]]''' |
|
| |
|
|
| |
|
| The invisible hand mechanism argues that members of a society do not coordinate their actions towards achieving a pre-specified outcome. Their behavior is not guided by an explicit agreement; however, the results of their spontaneously coordinated actions will translate into the the achievement of an aggregate outcome, which seems to be the product of an omniscient mind. Smith argues that centralized legislators cannot possess the knowledge those "on the spot" have, as in their pursuit of liberty, individuals will maximize their knowledge of their local situations. He also argues that interventions in the market are inefficient as "no regulation of commerce can increase the quantity of industry in any society beyond what its capital can maintain. It can only divert a part of it into a direction into which it might not otherwise have gone"
| |
|
| |
|
| | '''[[Carl Menger]]''' |
|
| |
|
| '''Jean-Baptiste Say'''
| |
|
| |
|
| '''Friedrich A. Hayek'''
| |
|
| |
|
| Hayek argues that people interpret the events they experience through the light of a preexisting system of classification, which is built through a process of cultural evolution and individual learning. The experiences people pass through have a crucial influence in them building a “growth of knowledge” process, which will define their future responses to various situations they will be facing. It is thus misleading to believe that humans can simply design a set of rules and impose it upon their environment, as is it the environment in which they live that shapes their behavior. Hayek considers that humans did not adopt laws and institutions because they were able to foresee the benefits these would bring. Rather, their adoption was due to spontaneous order, as they evolved through a process of the logic of choice. People’s behavior follows patterns that have previously been accepted by their society; this allows them to not only pursue their own means but the means of others as well.
| | '''[[Ludwig von Mises]]''' |
|
| |
|
| Hayek considers that the market is not simply a guide or a communication tool, but a complex mechanism which allows participants to spontaneously adopt their actions to circumstances and events they previously had no knowledge of. The market is not a social institution but a “value-free result of the Logic of Choice”, which not only makes use of the existing knowledge market participants have but continuously generates new knowledge. The market operates as a mode of coordination and information is being transmitted through a series of general mechanisms (i.e. the price mechanism).
| |
|
| |
|
| Hayek believes that rules constructed through the process of spontaneous order are significantly more effective than those constructed through a rational process: | | '''[[Friedrich A. Hayek]]''' |
| ''“It is unlikely that any individual would succeed in rationally constructing rules which would be more effective for their purpose than those which have been gradually evolved”'' (The Constitution of Liberty, 66).
| |
|
| |
|
| Hayek argues that spontaneous rules are a result of human action but not human design and evolve through a process of cultural evolution, whose outgrowths lie between instinct and reason (Bouckaret 34).
| |
|
| |
|
| ''“I want to call attention to what does indeed lie between instinct and reason, and which on that account is often overlooked just because it is assumed that there is nothing between the two. That is, I am chiefly concerned with cultural and moral evolution, evolution of the extended order, which is on the one hand…beyond instinct and often opposed to it, and which is, on the other hand…, incapable of being created or designed by reason”'' (The Fatal Conceit: The Errors of Socialism, 21).
| |
|
| |
|
| ''“Just as instinct is older then custom and tradition, so then are the latter older than reason: custon and tradition stand between instinct and reason – logically, psychologically, temporally"'' (The Fatal Conceit: The Errors of Socialism, 23).
| | '''[[Jack Knight]]''' |
|
| |
|
|
| |
|
| '''Samuel Bowles''' | | '''[[Samuel Bowles]]''' |
|
| |
|
| '''Et. Al.'''
| | <p align="center"> [[General Overview]] | [[Major Contributors]] | [[Game Theory Models]] | [[Objections/Arguments]] | [[Sources]]</p> |
| | |
| <p align="center"> [[General Overview]] | [[Major Contributors]] | [[Game Theory Models]] | [[Objections/Arguments]] </p> | |
