IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/37888.html
   My bibliography  Save this paper

A critical survey of J. K. Arrow'S theory of knowledge

Author

Listed:
  • Vahabi, Mehrdad

Abstract

In my critical review of Arrow's theory of information, I show that despite its great achievements, this theory lacks the tacit, institutionalized, unexpected and non-rational dimensions of knowledge. The organizational or corporate culture cannot be derived from market failure or market imperfection. It is the direct outcome of internal organization of firm and other social networks, and thus closely related to learned and transmitted knowledge in a group context. Hence knowledge does not simply reflect the limits of market (as suggested by Arrow, 1974), and the presence of parametrical uncertainty, it implies the power of organization and networks in the face of radical uncertainty.

Suggested Citation

  • Vahabi, Mehrdad, 1996. "A critical survey of J. K. Arrow'S theory of knowledge," MPRA Paper 37888, University Library of Munich, Germany, revised 1997.
    • Handle: RePEc:pra:mprapa:37888
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/37888/1/MPRA_paper_37888.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Arthur T. Denzau & Douglass C. North, 1994. "Shared Mental Models: Ideologies and Institutions," Kyklos, Wiley Blackwell, vol. 47(1), pages 3-31, February.
    2. Dosi, G, 1991. "Some Thoughts on the Promises, Challenges and Dangers of an "Evolutionary Perspective" in Economics," Journal of Evolutionary Economics, Springer, vol. 1(1), pages 5-7, January.
    3. Langlois, Richard N., 1983. "Internal Organization In a Dynamic Context: Some Theoretical Considerations," Working Papers 83-04, C.V. Starr Center for Applied Economics, New York University.
    4. Morishima,Michio, 1994. "Capital and Credit," Cambridge Books, Cambridge University Press, number 9780521466387.
    5. Stiglitz, Joseph E, 1975. "The Theory of "Screening," Education, and the Distribution of Income," American Economic Review, American Economic Association, vol. 65(3), pages 283-300, June.
    6. Nelson, Richard R & Winter, Sidney G, 1980. "Firm and Industry Response to Changed Market Conditions: An Evolutionary Approach," Economic Inquiry, Western Economic Association International, vol. 18(2), pages 179-202, April.
    7. Nelson, Richard R, 1980. "Production Sets, Technological Knowledge, and R & D: Fragile and Overworked Constructs for Analysis of Productivity Growth?," American Economic Review, American Economic Association, vol. 70(2), pages 62-67, May.
    8. Morishima,Michio, 1992. "Capital and Credit," Cambridge Books, Cambridge University Press, number 9780521418409.
    9. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    10. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-368, June.
    11. Arrow, Kenneth J, 1969. "Classificatory Notes on the Production and Transmission of Technological Knowledge," American Economic Review, American Economic Association, vol. 59(2), pages 29-35, May.
    12. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-1171, September.
    13. Arrow, Kenneth J, 1991. "Scale Returns in Communication and Elite Control of Organizations," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 7(0), pages 1-6, Special I.
    14. F. A. Lutz, 1961. "The Theory of Capital," International Economic Association Series, Palgrave Macmillan, number 978-1-349-08452-4 edited by D. C. Hague, December.
    15. Giovanni Dosi, 2000. "Sources, Procedures, and Microeconomic Effects of Innovation," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 2, pages 63-114, Edward Elgar Publishing.
    16. Arrow, Kenneth J, 1994. "Methodological Individualism and Social Knowledge," American Economic Review, American Economic Association, vol. 84(2), pages 1-9, May.
    17. Nicholas Kaldor, 1961. "Capital Accumulation and Economic Growth," International Economic Association Series, in: D. C. Hague (ed.), The Theory of Capital, chapter 0, pages 177-222, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mehrdad Vahabi, 1999. "From Walrasian General Equilibrium to Incomplete Contracts: Making Sense of Institutions," Post-Print halshs-03704424, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rinaldo Evangelista, 2018. "Technology and Economic Development: The Schumpeterian Legacy," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(1), pages 136-153, March.
    2. Rinaldo Evangelista, 2015. "Technology, development and economic crisis: the Schumpeterian legacy," Working Papers 23, Birkbeck Centre for Innovation Management Research, revised Jun 2015.
    3. Giorgio Fagiolo & Paul Windrum & Alessio Moneta, 2006. "Empirical Validation of Agent Based Models: A Critical Survey," LEM Papers Series 2006/14, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    4. M. Ricottilli, 1990. "Technical Progress and Structural Change in the Process of Economic Development," Working Papers 101, Dipartimento Scienze Economiche, Universita' di Bologna.
    5. Parui, Pintu, 2021. "Financialization and endogenous technological change: A post-Kaleckian perspective," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 221-244.
    6. Bent Dalum & Gert Villumsen, 1996. "Are OECD Export Specialisation Patterns 'Sticky'? Relations to the Convergence-Divergence Debate," DRUID Working Papers 96-3, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    7. Kylaheiko, Kalevi, 1998. "Making sense of technology: Towards a synthesis between neoclassical and evolutionary approaches," International Journal of Production Economics, Elsevier, vol. 56(1), pages 319-332, September.
    8. Hodgson, Geoffrey M., 1998. "Competence and contract in the theory of the firm," Journal of Economic Behavior & Organization, Elsevier, vol. 35(2), pages 179-201, April.
    9. Amavilah, Voxi Heinrich, 2014. "Human Knowledge and a Commonsensical Measure of Human Capital: A Proposal," MPRA Paper 57670, University Library of Munich, Germany.
    10. Paul Lewis, 2021. "The innovation systems approach: an Austrian and Ostromian perspective," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 34(1), pages 97-114, March.
    11. Ageliki Anagnostou & Ioannis Panteladis & Maria Tsiapa, 2015. "Disentangling different patterns of business cycle synchronicity in the EU regions," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(3), pages 615-641, August.
    12. Giovanni Dosi & Andrea Roventini & Emmanuele Russo, 2020. "Public Policies And The Art Of Catching Up," Working Papers hal-03242369, HAL.
    13. Maxim Kotsemir & Alexander Abroskin & Dirk Meissner, 2013. "Innovation concepts and typology – an evolutionary discussion," HSE Working papers WP BRP 05/STI/2013, National Research University Higher School of Economics.
    14. Joly, P. B. & Mangematin, V., 1996. "Profile of public laboratories, industrial partnerships and organisation of R & D: the dynamics of industrial relationships in a large research organisation," Research Policy, Elsevier, vol. 25(6), pages 901-922, September.
    15. Giovanni Dosi & Andrea Roventini & Emanuele Russo, 2021. "Public policies and the art of catching up: matching the historical evidence with a multicountry agent-based model [Catching up, forging ahead, and falling behind]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(4), pages 1011-1036.
    16. Alexander Galetovic & Ángel Cabrera, "undated". "Tópicos en la Economía de la Investigación Tecnológica," Documentos de Trabajo 121, Instituto de Economia. Pontificia Universidad Católica de Chile..
    17. Mohnen, Pierre & Roller, Lars-Hendrik, 2005. "Complementarities in innovation policy," European Economic Review, Elsevier, vol. 49(6), pages 1431-1450, August.
    18. Taalbi, Josef, 2017. "What drives innovation? Evidence from economic history," Research Policy, Elsevier, vol. 46(8), pages 1437-1453.
    19. Giovanni Dosi & Richard Nelson, 2013. "The Evolution of Technologies: An Assessment of the State-of-the-Art," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 3-46, June.
    20. Balconi, Margherita, 2002. "Tacitness, codification of technological knowledge and the organisation of industry," Research Policy, Elsevier, vol. 31(3), pages 357-379, March.

    More about this item

    Keywords

    Information and knowlege; Tacit knowledge; Team theory; Screening and Education; Market limits; individualistic and collective knowledge;
    All these keywords.

    JEL classification:

    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:37888. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.