Vernon Smith makes use of Hayek`s concept of two forms of rationality to obtain a larger vision of meaning in social and market behavior. However, there is big difference between Hayek`s concept and Smith`s. This difference is very closely connected w...
Vernon Smith makes use of Hayek`s concept of two forms of rationality to obtain a larger vision of meaning in social and market behavior. However, there is big difference between Hayek`s concept and Smith`s. This difference is very closely connected with a inconsistency of Hayek`s theory. Smith`s interpretation reveals the inconsistency more clearly and weakens the grounds of liberalist`s critique on social planning and intervention.