March 1, 2010

Israel Kirzner on Coordination and Discovery

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In keeping with the praxeological style of discourse, Kirzner claims that his notion  of coordination can be used as a clear-cut criterion of economic goodness. Kirzner  wishes to claim that gainful entrepreneurial action in the market is  always coordinative. This essay contends that Kirzner’s efforts to be categorical and  to avoid looseness are unsuccessful and argue that looseness inheres in the  economic discussion of the most important things, and associate that viewpoint with  Adam Smith. We suggest that Hayek is much closer to Smith than to  Mises, and that Kirzner’s invocations of Hayek’s discussions of coordination are spurious.

Read the article at the Journal of Private Enterprise.