Cass Sunstein begins: With respect to the past and future of regulation, there are two truly indispensable ideas. Unfortunately, they are in serious tension with one another. Potential solutions lie in three reforms, all connected with democracy itself – but perhaps not quite in the way that most people think. The first indispensable idea is … More Cass Sunstein on Regulatory Analysis and the Knowledge Problem
Not surprisingly, given the title of this blog and the focus of my research, the last video in the series for my history of economic thought course provides an introduction to Hayek and the knowledge problem. Hayek’s work in the 20th century explored a range of ideas, one of the most important of which was … More History of Thought Course Video: Hayek and the Knowledge Problem
Nathan Goodman, at the Liberty Minded blog, pulls the Hayekian knowledge problem out of the pricing field and applies it in the field of social relations. Well, technically speaking, Goodman employs just the tacit knowledge elements of Hayek’s “The Use of Knowledge in Society” article, but he uses it to make a good point: some … More Tacit Privilege and Social Order
Lynne Kiesling Today’s Hayek’s birthday, a worthwhile landmark for reflection on his work and why it’s important to read. I assign “The Use of Knowledge in Society” in every class I teach, and I recommend it if you haven’t yet read it. Here Hayek argues that the fundamental economic problem societies face is not the allocation … More Happy Birthday Hayek!
Michael Giberson The Gulf Coast Power Association meetings earlier this week included a debate over the future of resource adequacy within the ERCOT power system. Debate moderator Eric Schubert, BP Energy Company, introduced the issue with a critique of capacity market structures that is heavy on its reliance on Hayek’s knowledge problem. It is a … More Rto Forward Capacity Markets Are Unlikely to Succeed
Lynne Kiesling I have a new paper that may be of interest to KP readers, since the subject of the paper is the same as the name of this site: Knowledge Problem. I am honored to have been invited to contribute this paper to the forthcoming Oxford Encyclopedia of Austrian Economics (Peter Boettke and Chris … More New Paper: Knowledge Problem
Lynne Kiesling Penn Jillette, the taller and more vocal half of the magic performance duo Penn & Teller, has written a lovely and thoughtful essay as a companion to his appearance last night on Piers Morgan’s CNN show. It defies excerpting, so I encourage you to click through and read it in its entirety. His … More Penn Jillette and Hayek: “I Don’t Know”
Michael Giberson The knowledge problem made the newspaper today – that’s Hayek’s concept of the knowledge problem, not the KP blog that Lynne and I operate. But since we appreciate the significance of Hayek’s insight on the mobilization of knowledge, it seems appropriate to draw attention to Glenn Reynold’s op-ed, “Progressives can’t get past the … More I Cringe when I See Hayek’s Knowledge Problem Wielded As a Rhetorical Club
Michael Giberson The answer to the title question is “nothing,” according to Marc Gunther (though he admits of the difficulty of being certain when the bill is 932 pages and still in process). The kind of kites he has in mind are high-altitude solar power collectors, under development by the Makani Power company. That Waxman-Markey … More What Does Waxman-markey Have to Say About Kites?
Michael Giberson Occasionally we hear from readers curious about the blog name, “knowledge problem.” Edmund Phelps explains the knowledge problem in an excellent essay that appeared in the Financial Times. (Registration may be required for FT.com; the essay is also posted in full at the FT‘s Capitalism blog.) Joseph Schumpeter’s early theory proposed that a … More Edmund Phelps Explains “Knowledge Problem”