Studies in Philosophy, Politics and Economics: Hayek, F. A.: 9780710029874: Amazon.com: Books

Today there's flood of articles that try to explain how transactions work under asymmetric information. They are related to the question for the design, for example, of rules that guarantee a so-called "first best solution". I think there are many unanswered question here: How can you measure first best situations? Is it recommendable to do such investigations, when there's a situation with asymmetric information, where you don't know what an unexpected change of information may implicate? And finally, how can we assume that the economist has the overall view on how things are working?All these questions have normative and methodological aspects. "Studies..." gives you a very interesting view on the limitations of our understanding regarding the mechanisms of the economy. However, Hayeks liberal approach makes it understandable why laws, orders and rules have their limitations: First best solutions cannot be achieved because rules themselves are incomplete.My favorite articles are "Degrees of Explanation" (methodologically oriented paper) and "The Cooperation in a Democratic Society: In Whose Interest Ought It To and Will It Be Run?" (normative approach). Here you'll find a deeper understanding of economics.

This is one of the most important books on the philosophy of social sciences of all the XX century. It's a pity that ideological prejudices keep this book unknown to philosophers and social scientists.

Hayek is best known for his book The Road to Serfdom and his 1945 article The Use of Knowledge in Society. These are fine works, but this collection of essays is exceptional. Rules, Perception, and Intelligibility (chapter 3) is a brilliant discussion of the limits of human knowledge and comprehension. This is in the philosophy section of this book, but it is important to understanding Hayekian economics. The Theory of Complex Phenomena (chapter 2) draws upon Popper and makes many interesting points, such as how learning leads to greater awareness of our ignorance. The result of Human Action, but not of Human Design (chapter 6) makes the importance of the evolutionary-spontaneous order conception of society clear. The Intellectuals and Socialism (chapter 12) and The Transmission of the Ideals of Freedom address important but largely neglected issues on how ideas shape events. The Principles of a Liberal Order (chapter 11) ties the ideas of limited government and complex spontaneous orders together. The Non Sequitur of the Dependence Effect (chapter 23) is a brilliant demolition of Galbraith's Affluent Society. Hayek proves that while Galbraith was right about how preferences evolve, he simply arrived at the wrong conclusions. The Corporation in a Democratic Society (chapter 22) confirms Milton Friedman's contention that corporations must pursue profits rather than `vague and un-definable social responsibility'.Why is this book out of print? I got a used copy, but it is hard to find. The rarity of this book is problematic. I know some people who know Hayek pretty well who have never heard of some of the essays in this book. `Studies' is better than Hayek's subsequent `New Studies' compilation and comparable to Individualism and Economic Order. The essays in this book demonstrate the greatness of Hayek's' scholarship.