Carl Menger's theory of invisible-hand explanations
- 2000
- p.529-65
- Dec
Carl Menger's theory of invisible-hand explanations is rooted in his methodology of the social sciences. Contrary to his 18th-century Scottish forerunners he explains both the emergence and the persistence of unplanned social institutions exclusively by the individual pursuit of perceived self-interest. Contrary to Hayek's evolutionary functionalism, Menger's theory is not confined to the explanation of efficient or beneficial institutions. And contrary to Buchanan and Vanberg's institutional contractualism, it does not require that people form stable preferences over rules. - Reproduced