Unfolding the Allegory behind Market Communication and Social Error and Correction
AbstractOne aspect of the present paper is to draw out the Adam Smith in Friedrich Hayek. I suggest that common economic talk of market communication, market error and correction, and policy error and correction invokes a spectatorial being and appeals to our sympathy with such being. Behind such common economic talk, I suggest, are implicit allegories wherein an allegorical figure runs a system of superior knowledge, communication, and voluntary cooperation. Theoretical discussions of social error invoke the notion of agent error applied to the allegorical being. Similarly, theoretical talk of social correction invokes the notion of agent correction applied to the allegorical being. The allegory behind such talk is vital and necessary because without it the talk of social or market communication, error, and correction cannot be sustained. Unfolding the allegory clarifies the meaning, limitations, and value of such talk. Making what had been implicit explicit helps economists to avoid overstating their generalizations or making those generalizations sound more precise and accurate than they are. Meanwhile, scholars have pointed out that spectating impartially involves something of a paradox – distant-closeness, or cool-warmth. Concurring, I explore the connections between the features of the allegorical being and the doings of the economic agents. I suggest that the cogency of such theorizing depends on such correspondences, and that they are matters of culture, of both the context within which the theorizing is done and of the context theorized about.
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Bibliographic InfoPaper provided by The Ratio Institute in its series Ratio Working Papers with number 133.
Length: 34 pages
Date of creation: 26 Mar 2009
Date of revision: 05 May 2009
Note: Forthcoming in The Adam Smith Review
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Market communication; price system; error; correction; coordination; Adam Smith; Friedrich Hayek; impartial spectator; invisible hand;
Find related papers by JEL classification:
- A10 - General Economics and Teaching - - General Economics - - - General
- B10 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - General
- B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-05 (All new papers)
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