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RINKONOMICS: A WINDOW ON SPONTANEOUS ORDER 1
Author(s) -
Klein Daniel B.
Publication year - 2006
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2006.00672.x
Subject(s) - analogy , spontaneous order , meaning (existential) , order (exchange) , coincidence , mathematics , calculus (dental) , mathematical economics , philosophy , epistemology , economics , medicine , dentistry , finance , alternative medicine , pathology
The idea of spontaneous order is here exposited by analogy with roller skating at a roller rink. In the roller rink and in the economy, the key ingredient of spontaneous order is coincidence of interest. This makes the beneficial outcome possible. Central planning is bound to fail if for no other reason than because of the knowledge problem. The meaning of ‘spontaneous’ is discussed, along with the limits of the principle.