summary of calculation debate

["Charles Brown" <CharlesB@xxxxxxxxxxxxxxxxxxxxx>]

>>> JKSCHW@xxxxxxx 07/20/00 11:09PM >>>
In a message dated 7/20/00 10:28:04 PM Eastern Daylight Time,
michael@xxxxxxxxxxxxxxxxx writes:

<< Hayek should have to point out that real markets are
 > dynamic and have nothing to do with static equilibrium equations--or am I
 > misunderstanding Hayek?

 Absolutely correct.  Although he neglects the problem with handling dynamic
 information in his own theory.  He assumes that static prices convey
sufficient
 information. >>

This misses H's point about the entrepreneur. The E doesn't just look at
prices. He goes out and gets information about what peiople want,

_________

CB: This is not the whole picture. The Entrepreneur spends a lot of time trying to make people want what "he" has got to sell. Maybe more money is spent on controlling people's wants than "discovering" them.  The most powerful corporations spend a lot of time trying to defeat or destroy their competitors regardless of whether people WANT what their competitors sell.

_________



what
resources there are, what concrete means exist to satisfy these needs. He
relies on price information,a nsd expects others to, because (the Hayeklian
point) no one can know as much about everything as he does about his little
bit. But H's system runs on entrepreneurial knowledge, not on price
crunching.  It is because markets encourage entrepreneurship that H is so
keen on them.

--jks