The Bactra Review Brainchildren
Cf. Friedrich Hayek, ``Economics and Knowledge, '' ch. 2 of Individualism
and Economic Order (University of Chicago Press, 1948), on the subject
of ``plans determined upon simultaneously but independently by a number of
persons'':
In the first instance, in order that all these plans can be carried out, it is
necessary for them to be based on the expectation of the same set of external
events, since, if different people were to base their plans on conflicting
expectations, no set of external events could make the execution of all these
plans possible. And, second, in a society based on exchange their plans will
to a considerable extent provide for actions which require corresponding
actions on the part of other individuals. This means that the plans of
different individuals must in a special sense be compatible if it is to be even
conceivable that they should be able to carry all of them out. Or, to put the
same thing in different words, since some of the data on which any one person
will base his plans will be the expectation that other people will act in a
particular way, it is essential for the compatibility of the different plans
that the plans of the one contain exactly those actions which form the data for
the plans of the other. [p. 38, omitting a footnote calling for sociologists
to analyze social relations in such terms]
This profound essay is also remarkable for its anticipations of evolutionary
game theory.