The methodological individualism and subjectivism of the Austrian tradition in economics is often associated with a methodological dualism, i.e. the claim that the nature of its subject matter, namely purposeful and intentional human action, requires economics to adopt a methodology that is...

In a society with dispersed knowledge, entrepreneurs have to identify opportunities, recognize them as relevant, and match them with (demand) preferences, technological feasibilities, and their own skills. According to Austrian theory, this is done on a subjective basis: different people not...

The methodological individualism and subjectivism of the Austrian tradition in economics is often associated with a methodological dualism, i.e. the claim that the nature of its subject matter, namely purposeful and intentional human action, requires economics to adopt a methodology that is...

Hayek was a firm believer in the effect of evolution on human behavior. This was a real advance since he wrote in a time when most social scientists believed in the “blank slate” ( Pinker, 2002 ) and denied the influence of biology on human actions. Moreover, Hayek got the basic outline of...

Friedrich Hayek, Ludwig von Mises, Ludwig Lachmann and George Shackle upheld that investigations of the causes of purposes, preferences, beliefs or behaviors by the social scientist were unwarranted. Shackle proposed that human agency is an “uncaused cause.” Others admitted that human...

Purpose – To present Hayek's model of the sensory order, especially in relation to communication, classification and subjective knowledge, arguing for the necessity of a more articulated theory of the “inter-personal” dimension of the mind. We proposed then to integrate Hayek's model of...

Purpose – To show the existence of two different lines of thought in economics: the Homo oeconomicus tradition and the evolutionary tradition. Methodology/approach – Following Hayek, the author adopts the individualistic methodology. This allows to separate the Homo oeconomicus approach,...

Entrepreneurship, Money, and Coordination begins with a single page introduction by the editor, Jurgen Backhaus, a well known economist now at the University of Erfurt, in which we learn that the contribution by Horst Feldmann (Hayek's theory of cultural evolution: A critique of the critiques)...

This article proposes to reassess Hayek's theory of cultural evolution in the light of Darwin's Descent of Man. It is shown that Hayek and Darwin refers to the same theory of human nature which is borrowed from the founding fathers of political economy, Hume and Smith. Their respective...

What is the appropriate role of the state in economic policy-making? This paper shows that Friedrich Hayek, who is often considered a proponent of laissez-faire liberalism, offers three different answers to this problem. First, Hayek argues that the state should provide a legal framework for...