The Use of Knowledge in Society

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The Use of Knowledge in Society is a seminal 1945 essay by economist Friedrich Hayek that argues how dispersed, tacit knowledge makes decentralized market prices superior to central planning in coordinating economic activity.

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The Use of Knowledge in Society canonical 3

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Statements (49)

Predicate Object
instanceOf academic article
economic essay
essay
arguesAgainst central economic planning
socialist calculation
author Friedrich Hayek
surface form: Friedrich A. Hayek

Friedrich Hayek
centralConcept decentralized decision-making
dispersed knowledge
economic coordination
knowledge problem
local knowledge
market process
price system
spontaneous order
tacit knowledge
countryOfOrigin United States of America
surface form: United States
field economics
epistemology of economics
political economy
firstPublished September 1945
influenced information economics
knowledge management in economics
market process theory
new institutional economics
public choice theory
theory of the firm
influencedBy Austrian School of economics
Ludwig von Mises
language English
notableAs classic essay in Austrian economics
seminal work in information economics
publicationType journal article
publicationYear 1945
publishedIn American Economic Review
relatedTo Austrian School of economics
surface form: Austrian economics

The Road to Serfdom
socialist calculation debate
supports decentralized markets
price mechanism
thesis central planners cannot aggregate and use all relevant local knowledge
economic knowledge is widely dispersed among individuals and cannot be fully centralized
market prices communicate information about relative scarcities
practical knowledge is often tacit and context-specific
the price system coordinates individual plans without central direction
topic coordination problem
economic planning
information and incentives
price signals

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Referenced by (3)

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Friedrich Hayek notableWork The Use of Knowledge in Society
Market Theory and the Price System relatedTo The Use of Knowledge in Society
socialist calculation debate hasImportantWork The Use of Knowledge in Society