Hayek's theory on complexity and knowledge: dichotomies, levels of analysis, and bounded rationality

Stefano Fiori

Journal of Economic Methodology, 2009, vol. 16, issue 3, 265-285

Abstract: Hayek maintains that models of complexity must consider two closely interrelated factors: the large number of variables and the connections among them. These two conditions, which define complex phenomena, exhibit a different logical dimension. The former (the 'large number of variables') describes complexity in quantitative (numerical) terms; the latter provides a view of complex phenomena in logical-relational terms, and it is evoked to explain the emergent properties of the whole. Despite the close relation between these concepts, the first notion essentially prevails over the latter, delineating a distinctive configuration of the theory. This perspective also emerges when Hayek defines 'dispersed' and 'inarticulate' knowledge, and introduces the concept of the 'explanations of the principles'. Finally, the notion of level of analysis is discussed in order to interpret Hayek's two concepts which define complexity.

Keywords: complexity; dispersed knowledge; inarticulate knowledge; information; explanations of the principle; bounded rationality (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/13501780903128548 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jecmet:v:16:y:2009:i:3:p:265-285

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RJEC20

DOI: 10.1080/13501780903128548

Access Statistics for this article

Journal of Economic Methodology is currently edited by John Davis and D Wade Hands

More articles in Journal of Economic Methodology from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().