Edited by Geoffrey M. Hodgson
Chapter 4: Discovery versus creation: implications of the Austrian view of the market process
4. Discovery versus creation: implications of the Austrian view of the market process Sandye Gloria-Palermo The Austrian tradition can hardly be described as a uniﬁed paradigm. The divergences between the foremost exponents are striking. Consider for instance the following controversies: Menger explicitly rejects the Böhm-Bawerkian theory of capital and interest; Wieser develops interventionist advice that contrasts with the liberal ideology of the whole tradition; Hayek refuses Misesian apriorism; Lachmann and Kirzner sharply disagree on the role of the equilibrium concept in economic analysis. Nevertheless, there seems to be a ground upon which modern Austrians (from Hayek, 1937, onwards) are relatively uniﬁed: the view of the market as a process.1 In this chapter, we will stress in a ﬁrst step that beyond this apparent agreement, there is no unity at all. Indeed, it is possible to deﬁne two distinct conceptions of the market process within the realm of the Austrian tradition itself, namely the one of Hayek–Kirzner and that of Lachmann. We will in a second step investigate the origins of this divide. We will show that the cleavage lies in the exclusion of the creative dimension of the human mind from the Kirzner–Hayek conception: by contrast with Lachmann’s view, agents are limited to discovery, discovery of proﬁt opportunities and discovery of knowledge. The distinction between discovery and creation implies much more than a mere intellectual curiosity about historical and analytical linkages between authors. More precisely, one of the issues at stake concerns the...
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