More than 70 years ago F. A. Hayek first put forward his thesis that markets work better than central planning because they make better use of knowledge. Now, a new research program has appeared and come to a Hayekian conclusion of its own: in situations where information is decentralized, the collective wisdom, the vox populi, is demonstrably superior to the judgment of experts alone.
Hayek Revisited
Planning, Diversity, and the Vox Populi
By Will C. Heath
This
article
appeared in
the Summer 2007 issue of The Independent Review.
Economic History and DevelopmentEconomic PolicyEconomistsEconomyFree Market EconomicsGovernment and PoliticsLaw and LibertyPhilosophy and ReligionPolitical TheoryPublic Choice
Other Independent Review articles by Will C. Heath | |
Summer 2008 | The Difference:How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies |