F.A. Hayek

Paper Summary:

This paper examines the theories of F.A. Hayek, the Austrian-British economist whose works centered on business cycles, capital theory and monetary theory. In particular, the paper addresses Hayek's theories on competition. It centers on Hayek's concern that that no single central planner in a socialist system could ever have enough understanding of the complexities of economic data.

From the Paper:

"The point here, and one that Hayek would make throughout his career, is that only those individuals on the ground level of business that are engaged in developing their own products or requiring them really know what they want and that markets only derive their meaning from the actions of the individual economic entities. There is no essential a priori rule of market, according to Hayek, above and beyond the meaning that is invested in them by the interactions of individuals. In his essay, "The Meaning of Competition" Hayek further explores the role that competition plays in creating markets and, moreover, examines how competition is extremely useful both to societies and people because it promotes a flexible system that can adapt to new situations and rewards inventiveness and innovation."

More papers on F.A. Hayek:

• Essay # 66847 : "F. A. Hayek's "The Road to Serfdom"
• Book Review # 43930 : "The Fatal Conceit"
• Essay # 84932 : "Hayek's Dictum"

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