Hayek On The Role Of Entrepreneurship In The Market Process

The distinction between made order and spontaneous order outlines the conceptual foundations of Hayek's theory of the market process. The made order represents an artificial construction that needs to be understood as a deliberately designed type of order in terms of an organisation, while the spontaneous order is perceived as a self-generating and self-organising type of grown order - a product of human action but not of human design Hayek 1973, p. 37 . In this framework, the market process is...

Entrepreneurship In The Hayekian Theory Of Cultural Evolution

The notion of market competition as a discovery procedure points to the theory of cultural evolution which is also concerned with the matter of knowledge and learning, that is, the process of competitive selection among rules and other institutions that define frameworks for social interaction. According to Hayek, the trial and error procedures of the market process, that are also dealing with rules as problem-solving devices, are to be viewed as an element of the innovation and selection of...