Loading...

Spontaneous Order of Market and Institutional Challengaes

Arabzadeh Jamali, Hamzeh | 2009

638 Viewed
  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 42460 (42)
  4. University: Sharif University of Technology
  5. Department: Philosophy of Science
  6. Advisor(s): Mirjalili, Hossein
  7. Abstract:
  8. Hayek is one of the most impressive figures of Austrian School of Economics established by Carl Menger. The Thinkers of this school of thought believed that governments should not intervene in the market process. They argued that such interventions would spoil the market performance in resource allocation. Hayek believes that the order which emerges from the market is a spontaneous one; it means no one has designed it, but it has evolutionarily evolved by distinctive agents' actions who had no plan to make it. Hayek's arguments for spontaneous order are based on some epistemological presuppositions such as: "methodological individualism", "methodological subjectivism", "tacit knowledge" and the theory of "dispersed knowledge". Hayek believes free market, by means of free competition which provides the opportunity of using more amount of the tacit knowledge dispersed throughout all agents, guarantee more efficient resource allocation. On the other side, New Institutional Economists claim that free market can provide such desirable results only when there are institutions which could decline transaction cost. They argue that if there is not such institutions, the governments must intervene in market in some ways such as: making change in relative prices, establishing efficient institutions/organizations and etc. In this dissertation, firstly, we will try to investigate the arguments for "spontaneous order" introduced by Austrian School (our focus will be on Hayek) and then we will provide some institutional critiques of this concept
  9. Keywords:
  10. Transaction Cost ; Spontaneous Order ; Methodological Individualism ; Methodological Subjectivism ; Dispersed Knowledge

 Digital Object List

 Bookmark

No TOC