The work of Friedrich Von Hayek contains several testable predictions about the nature of market processes. Vernon Smith termed the most important one the 'Hayek Hypothesis': equilibrium prices and the gains from trade can be achieved in the presence of diffuse, decentralized information, and in...

We respond to points made by Klein and Briggeman (2010), who criticize the use of definitive statements within the body of research by Israel Kirzner. We contend that Klein and Briggeman's critique fails to recognize the context of Kirzner's arguments within the broader tradition of neoclassical...