Skip to main content

The Market as a Creative Process

  • James M. Buchanan (a1) and Viktor J. Vanberg (a1)

Contributions in modern theoretical physics and chemistry on the behavior of nonlinear systems, exemplified by Ilya Prigogine's work on the thermodynamics of open systems (Prigogine and Stengers, 1984), attract growing attention in economics (Anderson, Arrow, and Pines, 1988; Arthur, 1990; Baumol and Benhabib, 1989; Mirowski, 1990; Radzicki, 1990). Our purpose here is to relate the new orientation in the natural sciences to a particular nonorthodox strand of thought within economics. All that is needed for this purpose is some appreciation of the general thrust of the enterprise, which involves a shift of perspective from the determinism of conventional physics (which presumably inspired the neoclassical research program in economics) to the nonteleological open-endedness, creative, and nondetermined nature of evolutionary processes.

Hide All
Allen, Peter M. 1985. “Towards a New Science of Complex Systems.” In The Science and Praxis of Complexity, by Aida, S. et al. , pp. 268–97. Tokyo: The United Nations University.
Allen, Peter M. 1988. “Evolution, Innovation and Economics.” In Technical Change and Economic Theory, edited by Dosi, G., Freeman, C., Nelson, R., Silverberg, G., and Soete, L., pp. 95119. London: Pinter Publishers Ltd.
Anderson, Philip W., Arrow, Kenneth J., and Pines, David (editors). 1988. The Economy as an Evolving Complex System. New York: Addison-Wesley.
Arthur, W. Brian. 1990. “Positive Feedbacks in the Economy.” Scientific American 262:9299.
Barry, Norman. 1982. “The Tradition of Spontaneous Order.” The Literature of Liberty 5:758.
Baumol, William, and Benhabib, Stephen. 1989. “Chaos: Significance, Mechanism, and Economic Applications.” Journal of Economic Issues 3:77106.
Buchanan, James M. 1969. Cost and Choice – An Inquiry in Economic Theory. Chicago: Markham Publishing Company.
Buchanan, James M. 1977. “Politics and Science.” In Freedom in Constitutional Contract, by Buchanan, J. M., pp. 6477. College Station: Texas A&M University Press.
Buchanan, James M. 1982. “Order Defined in the Process of Its Emergence.” The Literature of Liberty 5:5.
Buchanan, James M. 1985. “The Potential for Tyranny in Politics as Science.” In Liberty, Market and State, by Buchanan, J. M., pp. 4054. New York: New York University Press.
Buchanan, James M. 1987. “L. S. E. Cost Theory in Retrospect.” In Economics – Between Predictive Science and Moral Philosophy, by Buchanan, J. M., pp. 141–51. College Station: Texas A&M University Press.
Fehl, Ulrich. 1986. “Spontaneous Order and the Subjectivity of Expectations: A Contribution to the Lachmann-O'Driscoll Problem.” In Subjectivism, Intelligibility, and Economic Understanding, edited by Kirzner, I. M., pp. 7286. New York: New York University Press.
Hayek, Friedrich A. 1978. “Competition as a Discovery Procedure.” In New Studies in Philosophy, Politics, Economics, and the History of Ideas, by Hayek, F. A., pp. 179–90. Chicago: The University of Chicago Press.
Joyce, James. 1960. Ulysses. London: Bodley Head.
Kirzner, Israel M. 1985. Discovery and the Capitalist Process. Chicago: The University of Chicago Press.
Kirzner, Israel M. 1989. Discovery, Capitalism, Distributive Justice. New York: Basil Blackwell.
Lachmann, Ludwig M. 1976. “From Mises to Shackle: An Essay on Austrian Economics and the Kaleidic Society.” Journal of Economic Literature 14:5462.
Lachmann, Ludwig M. 1977. “Professor Shackle on the Economic Significance of Time.” In Capital, Expectations, and the Market Process, by Lachmann, L. M., pp. 8193. Kansas City, MO: Sheed Andrews and McMeel.
Littlechild, Stephen C. 1979. “Comment: Radical Subjectivism or Radical Subversion.” In Time, Uncertainty and Disequilibrium: Exploration of Austrian Themes, edited by Rizzo, M., pp. 3249. Lexington, MA: Lexington Books.
Littlechild, Stephen C. 1983. “Subjectivism and Method in Economics.” In Beyond Positive Economics, edited by Wiseman, J., pp. 3849. London: Macmillan.
Littlechild, Stephen C. 1986. “Three Types of Market Process.” In Economics as a Process – Essays in the New Institutional Economics, edited by Langlois, Richard N., pp. 2739. Cambridge: Cambridge University Press.
Mayr, Ernst. 1982. The Growth of Biological Thought – Diversity, Evolution, and Inheritance. Cambridge, MA: Harvard University Press.
Mirowski, Philip. 1990. “From Mandelbrot to Chaos in Economic Theory.” Southern Economic Journal 57:289307.
O'Driscoll, Gerald P., and Rizzo, Mario J.. 1985. The Economics of Time and Ignorance. New York: Basil Blackwell.
Polanyi, Michael. 1951. The Logic of Liberty. Chicago: The University of Chicago Press.
Popper, Karl R. 1957. The Poverty of Historicism. Boston: The Beacon Press.
Popper, Karl R. 1982. The Open Universe – An Argument for Indeterminism. Totowa, NJ: Rowan and Littlefield.
Prigogine, Ilya. 1985. “New Perspectives on Complexity.” In The Science and Praxis of Complexity, by Aida, S. et al. , pp. 107–18. Tokyo: The United Nations University.
Prigogine, Ilya. 1986. “Science, Civilization and Democracy.” Futures 18:493507.
Prigogine, Ilya, and Stengers, Isabelle. 1984. Order out of Chaos – Man's New Dialogue with Nature. Toronto: Bantam Books.
Radzicki, Michael J. 1990. “Institutional Dynamics, Deterministic Chaos, and Self-Organizing Systems.” Journal of Economic Issues 24:57102.
Shackle, G. L. S. 1979. Imagination and the Nature of Choice. Edinburgh: Edinburgh University Press.
Shackle, G. L. S. 1981. “Comments.” In Subjectivist Economics – The New Austrian School, by Shand, A. H., pp. 5967. Oxford: The Pica Press.
Shackle, G. L. S. 1983. “The Bounds of Unknowledge.” In Beyond Positive Economics, edited by Wiseman, J., pp. 2837. London: Macmillan.
Tullock, Gordon (editor). 1983. The Simons' Syllabus, by Simons, Henry Calvert. Blacksburg: Virginia Polytechnic Institute and State University.
Vaughn, Karen I. 1990. “Profits, Alertness and Imagination” (review of I. M. Kirzner's Discovery, Capitalism, and Distributive Justice). Journal des Economistes et des Etudes Humaines 1:183–88.
Wicken, Jeffrey S. 1987. Evolution, Thermodynamics, and Information – Extending the Darwinian Paradigm. Oxford: Oxford University Press.
Wiseman, Jack. 1989. Cost, Choice, and Political Economy. Aldershot: Edward Elgar.
Wiseman, Jack. 1990. “Principles of Political Economy – An Outline Proposal, Illustrated by Application to Fiscal Feralism.” Constitutional Political Economy 1:101–27.
Witt, Ulrich. 1985. “Coordination of Individual Economic Activities as an Evolving Process of Self-Organization.” Economie Appliquée 37:569–95.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Economics & Philosophy
  • ISSN: 0266-2671
  • EISSN: 1474-0028
  • URL: /core/journals/economics-and-philosophy
Please enter your name
Please enter a valid email address
Who would you like to send this to? *


Full text views

Total number of HTML views: 0
Total number of PDF views: 83 *
Loading metrics...

Abstract views

Total abstract views: 1055 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 19th March 2018. This data will be updated every 24 hours.