Hayek on Expectations: The Interplay between two Complex Systems

Agnès Festré and Pierre Garrouste
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Pierre Garrouste: GREDEG CNRS

No 2016-13, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: In this paper we argue that Hayek’s expectations approach can be better understood by taking account of the interplay between two related complex systems: the complex system of cognition and the complex system of behavioral rules of action. The former is located at the individual level and concerns the way human beings perceive the physical world as and well as their fellow men. The second one concerns how human beings behave (essentially how they follow rules) and form expectations based on the properties of their cognitive systems, such that the system of rules to which they adhere provides higher order regularities which preserve their existence over time, that is, the existence of societies. The article is organized as follows. Section 1 provides a detailed description of these complex systems and emphasizes their differences. Section 2 deals with the interplay between these two systems, and discusses the consequences of forming expectations. Section 3 sums up the paper’s main arguments.

Keywords: Hayek; emergence; complexity; knowledge; expectations (search for similar items in EconPapers)
JEL-codes: B25 B4 B53 D84 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2016-05
New Economics Papers: this item is included in nep-hme, nep-hpe and nep-neu
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http://195.220.190.85/GREDEG-WP-2016-13.pdf First version, 2016 (application/pdf)

Related works:
Working Paper: Hayek on expectations: the interplay between two complex system (2019)
Working Paper: Hayek on Expectations: The Interplay between Two Complex Systems (2018)
Working Paper: Hayek on expectations: The interplay between two complex systems (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2016-13

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