Thursday, January 6, 2011

Less emphasis on price?

Reading the Boettke, Sautet paper. I see Hayek has too much emphasis on price, Mises gets the market as a process, Kirzner gets entanglement, and Hayek gets the idea of positive uncertainty. Good for them.

I see no contradiction, other than a mild over emphasis on price. We bound uncertainty through the quantization process, making sure deliveries are large enough and frequent enough to overcome any previous knowledge error.

That leaves them with a mathematics of structure. The fact that knowledge is limited in range means they are stuck with a particular form of math, but they have a math. The math says that under these conditions, there are bounds to knowledge, we precalculate the bounds and work around them. The Austrians also have quite a bit of new neuroscience to fill in the gaps, using the same math.

Channel theory: Entanglement is resolved with bounded channels of heavy and lightweight goods distribution, which the brain forces into coherence by quantizing to a known uncertainty.

No comments: