Location of Repository

Planning and know-how: the relationship between knowledge and calculation in Hayek's case for markets

By Dan Greenwood


Ludwig von Mises' calculation argument against socialism is of fundamental importance to the modern-day case for the market. Yet it is to Hayek that some Austrian-influenced theorists turn when responding to the computational models for non-market price fixing proposed by some socialists. Their reading of Hayek's epistemological argument for markets as distinct from Mises' calculation argument needs to be questioned. Hayek's emphasis upon the dispersal of knowledge across space and time is consistent with Mises' position. In spite of his philosophical critique of rationalist constructivism and his treatment of tacit knowledge, Hayek's case for the market ultimately relies upon the Misean calculation argument. Hayek's work is therefore best understood as a shift in emphasis rather than as a philosophical departure from Mises' position

Topics: UOW10
Publisher: Taylor & Francis
OAI identifier: oai:westminsterresearch.wmin.ac.uk:6066
Provided by: WestminsterResearch

Suggested articles



  1. (2003). Agent Technology: Enabling Next Generation Computing Agent Technology
  2. (2000). Austrian economics, socialism and impure forms of economic organisation,
  3. (1993). Calculation, complexity and planning: the socialist calculation debate once again,
  4. (1968). Competition as a Discovery Procedure, in:
  5. (1983). Did the theory of market socialism answer the challenge of Ludwig von
  6. (1920). Economic calculation in the socialist commonwealth, in:
  7. (1980). Economic calculation under socialism: the Austrian contribution,
  8. (1939). Economics of Socialism (Oxford:
  9. (1996). Environmental planning, economic planning and political economy,
  10. (1997). Hayek and the limitations of knowledge: philosophical aspects, in:
  11. (1997). Hayek III: The Necessity of Social Rules of Conduct, in: S.F. Frowen (Ed.) Hayek: Economist and Social Philosopher
  12. (1986). Hayek on
  13. (1994). Hayek’s Social and Political Thought
  14. (1954). History of Economic Analysis (London:
  15. (1945). Knowing how and knowing that,
  16. (1976). Law, Legislation and Liberty,
  17. (1973). Law, Legislation and Liberty, Vol. I (London: Routledge & Kegan Paul).
  18. (1990). Ludwig von Mises as a social rationalist,
  19. (1998). Monetary calculation and Mises’s critique of planning,
  20. (1996). Money, money prices, and the socialist calculation debate,
  21. (1937). On the economic theory of socialism: part one,
  22. (1937). Political Economy and Capitalism: Some Essays in Economic Tradition, 5 An interesting new area of research is that of multi-agent systems; see, for example, Luck et al.
  23. (1933). Price formation in a socialist community,
  24. (1989). Reviving the socialist calculation debate: a defence of Hayek against Lange,
  25. (1985). Rivalry and Central Planning (Cambridge:
  26. (1962). Rules, perception and intelligibility, in:
  27. (1998). Socialism against markets? A critique of two recent proposals,
  28. (1922). Socialism—An Economic and Sociological Analysis
  29. (1948). Socialist economics, in: H.W. Ellis (Ed.) A Survey of Contemporary Economics
  30. (1940). The competitive solution, in:
  31. (1967). The computer and the market, in:
  32. (1960). The Constitution of Liberty (London:
  33. (1991). The end of socialism and the calculation debate revisited,
  34. (2005). The limits to participatory planning: a reply to Adaman and Devine,
  35. (1998). The Market: Ethics, Knowledge, and Politics
  36. (1908). The Ministry of Production in the collectivist state, in:
  37. (1976). The new confusion about planning, in:
  38. (1945). The Open Society and its Enemies,
  39. (1935). The present state of the debate, in:
  40. (1952). The Sensory Order: an Inquiry into the Foundations of Theoretical Psychology (London: Routledge & Kegan Paul).
  41. (1935). The use of knowledge in society, in:
  42. (2000). Towards a history of the theory of socialist planning, in:
  43. (1993). Why Perestroika Failed

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.