a symposium on tullock's contributions to spontaneous order studies || thinking about order...
TRANSCRIPT
Thinking about Order without Thought: The Lifetime Contributions of Gordon TullockAuthor(s): Michael MungerSource: Public Choice, Vol. 135, No. 1/2, A Symposium on Tullock's Contributions toSpontaneous Order Studies (Apr., 2008), pp. 79-88Published by: SpringerStable URL: http://www.jstor.org/stable/27698252 .
Accessed: 15/06/2014 01:39
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .http://www.jstor.org/page/info/about/policies/terms.jsp
.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact [email protected].
.
Springer is collaborating with JSTOR to digitize, preserve and extend access to Public Choice.
http://www.jstor.org
This content downloaded from 188.72.126.108 on Sun, 15 Jun 2014 01:39:42 AMAll use subject to JSTOR Terms and Conditions
Public Choice (2008) 135 79-88
DOI 10 1007/sl 1127-008-9283-0
Thinking about order without thought: the lifetime
contributions of Gordon Tullock
Michael Munger
Received 11 September 2007 / Accepted 10 December 2007 / Published online 5 February 2008
Springer Science+Business Media, LLC 2008
Abstract Philosophers tend to think of them as "conventions "
Economists and some biolo
gists conceive of them as "spontaneous ordeis," a concept discussed at some length in othei
papers in this issue Peihaps the most general conception is "systems" theory, with loots m
many disciplines Many scholars in the sciences have tried to advance then reseaich agen
das by bringing systems theory to the study of human civilization Gordon Tullock, a scholar
who in the future will be recognized as someone well ahead of his own time, tiaveled the
reveise path, in many cases being the first to suggest that the path even exists
Keywords Tullock Spontaneous older Bioeconomics
Let me cleai about my claim a vanety of very significant scholars have contributed far more
than Tullock to the developing science of representing economies as spontaneous oideis
What Tullock has done is to show that the concept of spontaneous order, in its essentially economic meaning of directing esources, optimizing energy use, and minimizing costs, is
more general than has been previously recognized and has broad application in the law, in
bureaucracy, and in both macro- and micro-biological systems Tullock's work is the place to go for those of us who want to make the following argument It is not true that more
economists should read Holland What is true is that more scientists should read Hayek
1 Complex adaptive systems
Since the concept of spontaneous order is descnbed elsewhere in this issue, I will begin by
addressing a related concept, systems theory I should also note that the elations have not
been well developed, particularly from the science side I have very fiequently had the ex
perience of having a complex systems theorist lecture me about the "emergent" piopeities
M Munger (IS)
Department of Political Science and Department of Economics Duke University Durham
NC 27708-0097, USA e mail munger@ duke edu
4y Springer
This content downloaded from 188.72.126.108 on Sun, 15 Jun 2014 01:39:42 AMAll use subject to JSTOR Terms and Conditions
80 Public Choice (2008) 135 79-88
of gioups, leaving me open-mouthed at their aggressive ignorance of even the most basic
concepts of Austrian economics and Public Choice theory I suppose academics are social
ized to hold aloft round spoked disks and shout, "Look1 The wheel' I have invented it1", but
I still find their parochialism unsettling Human societies are complex adaptive systems A complex system is made up of many
parts, and cannot usefully be analyzed piecemeal Thus, they are nonlinear in a particular
way changes in one area affect processes somewhere else in the system, so complex systems
cannot be studied one part at a time Instead, some understanding is required of the entire
system, and the "comparative statics" of the system may produce unexpected or disastious
results
Complex adaptive systems have an additional feature Such systems are made up of
many elements that interact, just like standard complex systems But in adaptive systems the features of the elements themselves are not fixed, but can evolve according to rules
that are part of the make-up of the system These rules could be experience, or learning, oi
evolutionary selection, or something else entirely Holland (1998, p 10) claims that complex
adaptive systems "exhibit coherence under change, via conditional action and anticipation, and they do so without central direction" (Holland 1998 38-39)
The problem is that "coherence" is not the same as efficiency, or equity, or any other de
sirable property Evolution in nature pioduces "coherence under change "
One of the most
coherent, and persistent, patterns of matter are the insects called "cockroaches "
No one
would claim they are good, or desirable, or admirable They just aie The same thing might well be said about the outcomes of public choice processes It is perfectly true that institu
tional structures of domination and control may be persistent features of political economies
But that tells us nothing about whether these features are desirable
The Ottoman Empire lasted for more than 600 years, and though stable and elatively
peaceful it anested growth in the economies, and repressed progress in the sciences, of a
dozen nations Stability and coherence may not be good On the other hand, Enron Coi
poration exhibited the consequences, potential in many complex systems, of amplifying feedback That's no better, and possibly worse
The point is that there are many kinds of persistent areangements of human societies
that have nothing to do with markets They may last a long time, but have bad normative
properties And there may be very violent short-run events that seem to be very much mar
ket processes, and these also have very bad normative pioperties We are led to pose two
questions that, while hardly new, will require our attention The first is under what circum
stances will market processes have good (i e , Pareto superior) normative features9 And the
second is are these processes, not just the outcomes but the results themselves, mimicked
by "societies" other than human ones7
It is emarkable that Tullock, as early as 1971 in his article "The Coal Tit as a Careful
Shopper," was skipping ahead to the second question Remember, this was an era where the
answers to the first question (when are markets good7) was often "Never'" or "Under heavy
regulation "But Tullock was a man ahead of his time
I came across a summaiy of the work of J Gibb on the consumption of the eucosmid
moth Ernarmorma conicolana by coal tits which contains a figure which looks
surprisingly like a standard economic demand and supply diagram A little exami
nation indicated that it was not a true demand and supply curve, but nevertheless that
economic principles do apply quite readily Indeed, it can be said that the coal tits
are maximizing the return to their labor in searching out food supplies We need not,
of course, argue that the coal tits have thought the matter out in the same may that
human beings would Presumably, they have inherited an efficient pattern of behavior
4y Springer
This content downloaded from 188.72.126.108 on Sun, 15 Jun 2014 01:39:42 AMAll use subject to JSTOR Terms and Conditions
Public Choice (2008) 135 79-88 81
resulting from natural selection which would eliminate inefficient heritable behavior
patterns (Tullock 1971, p 77)
Tullock notes that the analogy he makes to comparison shopping based on price as a mech
anism for minimizing energy expenditure in finding and eating moths may appear to be
"bizarre," but he argues convincingly for the value of the theory as a means of making
predictions And, of course, he is quite right The advantage of the essentially economic
approach to investigating biological phenomena is clear One avoids the "'just so' story"
problem It is always possible to justify, ex post, why it must be efficient for a monkeye to
have a tail, or for flying squirrels to be able to fly, or for hedgehogs not to be able to fly
Tullock's approach to bioeconomics requires one of two things, either (1) the demon
stration that there exists no feasible alternative means of rearranging effort to reduce cost or
increasing fitness, or (2) the discovery that there is an unfilled environmental or behavioral
niche The second of these is particularly interesting, in that it provides something close to
a telos or predicted direction of movement on the fitness landscape
This conception of survival value is reflected in some of Tullock's later work on bioeco
nomics in a way that comes quite close to an argument about group selection In a relatively
recent article, Tullock (2002) uses an anecdote to illustrate that we are not always, every
where, egoistically self-mterested (He appears to believe that he is a limiting case if there
are instances where he, Gordon Tullock, was not entirely self-interested, there must be many
instances where less economystic people behave this way also )
I landed in Normandy on D plus 7 as a rifle company replacement That this was ex
tremely dangerous, I knew, although I cannot say I realized how dangerous it would
have been Fortunately, I ended up in a headquarters company and ran relatively little
risk At the time I landed, however, I had no idea that I would find the war primarily
boring and not particularly dangerous I cannot recall any strong feeling that all this
was unjust or that I should do anything about it except go forward and fire my rifle
My colleagues in the replacement package with which I landed seemed to have much
the same attitude In my own case, I wasn't even enthusiastic about the war I had read
Schumpeter and thought the war was three sided I suspected that the end would leave
Russia without any European country to hold them in check The fact that American
soldiers died to give Warsaw to the Russians did not in any way surprise me Never
theless I had no particular doubts about going forward and perhaps being killed
I was clearly not selfishly maximizing (Tullock 2002, p 99)
2 Market processes as group selection: which spontaneous order?
In the Wealth of Nations, Adam Smith famously talked about the problem of coordination
It is easy to object, when one reads this excerpt, that the process of production and purchase
of goods is not really an example of spontaneous order, or what Holland calls "emergence," at all The reason is that thousands of individual humans each will some part of this chain of
causation, and act on it Emergence cannot involve volition '
But that's wrong First, even if someone wills each step, it does not follow that the ag
gregate result is coherent, or even that the intention of the specific individual is actually
1 As Adam Ferguson (1966) put it, "the result of human action, but not the execution of any human design "
Hayek (1978) echoes this theme, in his "Of Human Action, But Not of Human Design" Thanks to Peter
Boettke for pointing out the parallel
4y Springer
This content downloaded from 188.72.126.108 on Sun, 15 Jun 2014 01:39:42 AMAll use subject to JSTOR Terms and Conditions
82 Public Choice (2008) 135 79-88
achieved by the action Second, even if the intended proximate consequences are achieved,
at each level, there need not be any intentionality causing the ultimate outcome Somehow,
the actions have to add up, to make sense in an impossibly complex setting where informa
tion is scattered and expensive Here's Smith's quote
Observe the accommodation of the most common artificer or day-labourer in a civi
lized and thriving country, and you will perceive that the number of people of whose
industry a part, though but a small part, has been employed in procuring him this ac
commodation, exceeds all computation The woollen coat, for example, which covers
the day-labourer, as coarse and rough as it may appear, is the produce of the joint
labour of a great multitude of workmen The shepherd, the sorter of the wool, the
wool-comber or carder, the dyer, the scribbler, the spinner, the weaver, the fuller, the
dresser, with many others, must all join their different arts in order to complete even
this homely pioduction How many merchants and carriers, besides, must have been
employed in transporting the materials from some of those workmen to others who
often live in a very distant pait of the country' how much commerce and navigation
in particular, how many ship-builders, sailors, sail-makers, rope-makers, must have
been employed in order to bring together the different drugs made use of by the dyer,
which often come from the remotest corners of the world' What a variety of labour
too is necessary in order to pioduce the tools of the meanest of those workmen' To say
nothing of such complicated machines as the ship of the sailor, the mill of the fuller,
or even the loom of the weavei, let us consider only what a variety of labour is req
uisite in order to form that very simple machine, the shears with which the shepherd
clips the wool The miner, the builder of the furnace for smelting the ore, the feller
of the timber, the burner of the charcoal to be made use of in the smelting-house, the
brick-maker, the brick-layer, the workmen who attend the furnace, the mill-wnght, the
forger, the smith, must all of them join their different arts in ordei to produce them
Hundreds of people, thousands actually, play a role in providing some part of nearly
every article of clothing, or office supplies, or household items, you own Yet none of them
have met you They might be nice people, or not nice people, personally But they likely
don't caie about you and your welfare, except in the most abstract sense Nonetheless, they
have worked to piovide you with food, goods, and shelter, and have done it at a lower price
than any other system imaginable
Let's be a little more careful, and give a definition A market is a collection of institutions
that reduces transactions costs and expands the volume of uncoerced impeisonal exchange
In impel sonal exchange, trades require only the information contained in product and price
Sellers or buyers, as individuals, are irrelevant and essentially invisible There is no easy
way of exercising preferences that we might think of as socially positive (i e , buying from
producers we like) or negative (discriminating against some group based on prejudice) No
one notices what we buy, or what we do, in the impersonal exchange space
But then if all the feedback mechanisms are atomistic, and impersonal, aie there mech
anisms for group selection within market processes7 This is, after all, the most important,
and most controversial, conclusion in the later work of Hayek How do markets select for
groups, or policies, or moral systems7
4 Springer
This content downloaded from 188.72.126.108 on Sun, 15 Jun 2014 01:39:42 AMAll use subject to JSTOR Terms and Conditions
Public Choice (2008) 135 79-88 83
3 The exchange origins of markets
Adam Smith famously recognized that the motoi of capitalist systems is division of labor,
and the fuel that drives this motor is self-interest Furthermore, the motor itself is not the
product of design or direction
This division of labour, norn which so many advantages aie derived, is not ongmally
the effect of any human wisdom, which foresees and intends that general opulence
to which it gives occasion It is the necessary, though veiy slow and giadual, conse
quence of a certain piopensity in human nature which has in view no such extensive
utility, the piopensity to truck, barter, and exchange one thing foi anothei Smith Bk I,
Chapter 2, http //www econhb oig/hbrary/Smith/smWN html
Early exchange was always personal, in the sense that the tiadeis knew each othei Ex
change of this sort has two origins differences in tastes, and diffeienees in endowments 7
If I have one apple and one banana, and you have one apple and one banana, and we
each like fruit salad well, I could offer you my banana for y oui banana, but you would
think I was crazy, or ti ymg to hide the bruised spot But if I have two apples, and you have
two bananas, and we both like fruit salad, then we have good easons to "tiuck, barter, and
exchange "
If I ti ade you one apple for one banana, the total amount of resouices available
is the same (still two apples, two bananas) Yet our exchange improves both our lots, as
resources go to higher valued uses Likewise, if each of us has one apple and one banana,
but I really prefer bananas and you really prefer apples, then again we exchange Same total
resources, but universal improvement in welfare, just from allowing exchange
Buchanan and Tullock note this feature of collective choice in markets quite clearly
Any theory of collective choice must attempt to explain oi to descube the means
through which conflicting interests aie reconciled In a genuine sense, economic the
ory is also a theory of collective choice, and, as such, provides us with an explanation of how sepaiate individual interests are econciled through the mechanism of trade
or exchange Indeed, when individual interests are assumed to be identical, the main
body of economic theory vanishes If all men weie equal in inteiest and in endow
ment, natural oi artificial, there would be no organized economic activity to explain Each man would be a Ciusoe Economic theory thus explains why men co-opeiate
through trade They do so because they aie different (Buchanan and Tullock 1962,
P 2)
A famous example of this "equal endowments, different preferences" ongin of a market
is Radford's (1945) description of a German PO W camp Allied piisoners got Red Cross
parcels, once per month (during good times), and the parcels contained identical quantities
of cigarettes, tinned beef, molasses, carrots, and othei delights And as soon as the packets
arrived, ti ade and exchange began, redirecting each commodity toward a higher value use
We can't know if things end up at their highest-valued use, because transactions cost (finding
trading partners, negotiating) may prevent some exchanges, but we know that every trade
that does take place makes at least those two people better off
-The evolution of this kind of exchange, and the expansion into personal or family production, is summa
nzed in a very interesting way by Ben-Porath (1980) The puzzle of the move from personal to impersonal
exchange, and the institutional path to accomplishing it, have most recently occupied North (2005) and Greil
(2006), who have made remarkable progress on this question Once again, Tullock was a man ahead of his
time
4y Springer
This content downloaded from 188.72.126.108 on Sun, 15 Jun 2014 01:39:42 AMAll use subject to JSTOR Terms and Conditions
84 Public Choice (2008) 135 79-88
In the prison camp, several things worked toward making this set of exchanges a real
market First, commodities were uniform an unopened can of carrots, or beef, or molasses,
is of known quantity and quality Second, these exchanges were routine and continuous, so
it came to be understood that although I might value carrots very highly, most people didn't,
and so the "price" of carrots (in terms of trade goods required in exchange) was quite low
No one could say, "Go sell your carrots to Lance Corporal Rutten, he'll pay more'"
Finally, institutions for facilitating exchange sprang up, not because of any central order
but rather because it reduced the cost of trades A bulletin board first used for other purposes was converted to a forum for bids and offers of exchanges A cigarette "currency" came to
be used, to get around the problem of bilateral barter If I want to sell beef, but you have
only carrots, which I don't like, we can't trade But if I can take cigarettes, even if I don't
smoke, knowing that cigarettes represent abstract command over all other commodities,
then we can trade quickly and cheaply At one point, an actual scrip, or paper currency was
created, backed by tins of beef, in an effort to reduce problems with fluctuations of cigarette
currency Cigarettes had the obvious problem that they were also a sought-after commodity, and periods where packets were delayed caused terrible deflation in the camp economy
So, at some points in Radford's account, we have a fully developed market I could
purchase, regardless of where I was in camp, indistinguishable cans of products, at the same
price, without reference to the personality or character of the seller I didn't even need to
know the person to be confident that the transaction would make me better off
Markets of larger geographic size, with fully elaborated production characterized by divi
sion of labor, have certain effects on social relations Division of labor forces most economic
activity to be impersonal, because of the physical size and enormous quantity of resources at
work in the market As productivity increases place firms under additional competitive pres
sures, and as exchange becomes more impersonal, discrimination in hiring and employment become too expensive to practice Firms lack the market power to practice discrimination,
and lack the information to target discrimination at individuals because they lack specific information about workers or consumers
On the other hand, firms are unable to pay high wages, or offer extended benefits like
pregnancy leaves, or holidays Without direction and regulation of the market, division of
labor drives health, wage, benefit, and safety policies toward convergence American firms
cannot afford to give women pregnancy leave in sock factories, because then the socks could
be made even more cheaply abroad, where these policies do not exist More starkly, a mem
ber of Congress who votes for required maternity leaves in Washington, DC is putting people out of business in Alabama, because someone in China figured out a way to divide the pro
duction process for socks into more steps than ever before None of them will ever meet, but
they affect each other profoundly The point is that there are many, very many, possible different states of the world econ
omy And we face two fundamental problems, problems that have not been solved, regarding them First, we as citizens of different countries have preferences over those states, and those
preferences may be strikingly different Given the diversity of goals and beliefs about the
good, what possible means of reconciliation can be used7 What institution can be relied to
produce coordinate, but undirected, efforts by hundreds of millions of people7
Second, even if we could somehow agree on a goal, how could we gain an understanding of the mapping from policies into outcomes7 Why would we think that action by government
makes things better, rather than worse7 And why would we expect elected officials to want
to make things better7
The first problem, differences m preferences and in fundamental moral norms, is one of
the most difficult theoretical nuts to crack in all the social sciences
4y Springer
This content downloaded from 188.72.126.108 on Sun, 15 Jun 2014 01:39:42 AMAll use subject to JSTOR Terms and Conditions
Public Choice (2008) 135 79-88 85
To understand our civilization, one must appreciate that the extended order resulted
not from human design or intention but spontaneously, it arose from unintention
ally conforming to certain traditional and largely moral practices, many of which
men tend to dislike, whose significance they usually fail to understand, whose validity
they cannot prove, and which have nonetheless fairly rapidly spread by means of an
evolutionary selection-the comparative increase of population and wealth-of those
groups that happened to follow them (FA Hayek, 1988, p 6, emphasis original)
So, one could argue that the survival of a cultural or moral system is subject to a process
of natural selection, no less than is true in natural systems of evolution such as those that
made the coal tit a "careful shopper" The problem with Tullock's analogy of "coal tit as
careful shopper" understood in Hayekian terms, is not intuitive In fact, it's astonishing
The problem in analyzing macro-level systems is not our assumption that birds think The
problem is our assumption that humans thinW Of course, we do think, all the time, but
we think about our selves and our own actions That has relatively little to do with the
effects of choosing one moral code or social system over another Hayek's "comparative
increase of population and wealth" may have nothing to do with any action that anticipates
this outcome Nonetheless, a wide variety of phenomena in human societies are socially
selected, by a process every bit as cutthroat as nature, red in tooth and claw
Let's pursue this analogy for a moment Suppose we observe a canine mammal, per
haps a wolf, or a coyote What inference about origin and survival would we draw7 This
morphology (adapted for the environment) and behavior (selected by the censoring of other
behaviors through starvation or failure to mate) is sufficiently high on a scale of fitness to
survive
But suppose that now we see a dachshund, does anything like this reasoning apply7
What caused this outrage, this offense to dog-shape7 Only if God had a truly perverse sense
of humor could dachshunds be explained by supernatural design And dachshunds could not
possibly survive, on their own, if they had to compete as predators with wolves and coy
otes It is easy to dismiss the example, of course obviously human direction and control of
breeding brought us wiener dogs But the reason we like wiener dogs (or, enough humans
like them to make them a distinct and recognizable breed) has to do with a much softer
selection mechanism socially constructed taste, or culture Which is better, a wiener dog or
a Chihuahua7 They don't compete for food, but their relative proportions in the dog popula tion very much reflect a competition for discretionary income some people buy dachshund
puppies, and others buy Chihuahuas
So, wolves and coyotes survive because they exhibit one kind of fitness they can out
compete other predators for resources, in part because of their instinctual pack behaviors
Dachshunds and Chihuahuas survive because they exhibit another kind of fitness humans
from some societies differentially intentionally select dachshunds and Chihuahuas as pets
One kind of selection (the natural kind) is Darwinian, the other kind of selection (the cul
tural kind) is Lamarckian 3 Dog owners prefer, as a matter of conscious intention, dogs with
outlandishly short legs And so, in Lamarckian terms, the dachshund "wants" to have short
legs, and so dachshund legs get shorter
3 Jean-Baptiste Lamarck, Philosophie Zoologique (1809) contrasted with Charles Darwin's Origin of Species
(1859) I had believed that this distinction in discussing culture was original to me, but in fact it appears verbatim in Caldwell's discussion of Hayek's thought in "The Emergence of Hayek's Ideas on Cultural Evo
lution," p 6 I am indebted to Caldwell for the Hayek citation on genetic evolution, as well as most of the
other Hayek references in the remainder of the chapter
4y Springer
This content downloaded from 188.72.126.108 on Sun, 15 Jun 2014 01:39:42 AMAll use subject to JSTOR Terms and Conditions
86 Public Choice (2008) 135 79-88
There is an even larger stage on which survival is important the survival of the entire
society, or culture My claim is that an emergent process, or spontaneous order of a rather
different kind, is likewise observable in the previous step the formation of preferences The key difference is the absence of any feedback mechanism by which the merits of the
emergent order might be judged, or subjected to modification Douglass North makes this
point quite forcefully
Efficient markets are created in the real world when competition is strong enough via
arbitrage and efficient information feedback to approximate the Coase zero transac
tion cost conditions and the parties can realize the gains from trade inherent in the
neo-classical argument
But the informational and institutional requirements necessary to achieve such effi
cient markets are stringent Players must not only have objectives but know the cor
rect way to achieve them But how do the players know the correct way to achieve
their objectives7 The instrumental rationality answer is that even though the actors
may initially have diverse and erroneous models, the informational feedback process and aibitragmg actors will correct initially incorrect models, punish deviant behavior
and lead surviving players to correct models (North 1990)
Elsewhere, North (1994) also makes it clear why the absence of coherent feedback is
important, and why societies might have difficulty changing their level of economic perfor mance He distinguishes two levels of analysis institutions and organizations Institutions
are the humanly devised rules of the game, formal (constitutions and laws) or informal
(norms, moral systems, manners), but they tend to be long-lived and not easily evaluated,
because there is no specific feedback metric for comparison Organizations are the optimiz
ing responses to the set of incentives and constraints created by institutions
The reason the distinction is important for North is that organizations are always optimal, in the sense that they maximize the advantage of those who own or control the organization
But transactions cost, both of writing complete contracts and of making changes in institu
tions, even Pareto-supenor changes, may lock organizations into institutional settings that
are in some larger some sense Pareto inferior More simply, there may exist alternative rule
arrangements that have the potential, through feasible compensation arrangements, to make
literally all the citizens in the society better off Yet these rules are not selected and the
existing, inferior rule set is maintained
Our point, of course, is that these sorts of "evolutionary" changes could not be more
different from the changes that result from mutation coupled with natural selection Hayek
developed this insight in some very profound ways His claims are, paradoxically, both
undei-recognized and controversial, because he was working on adaptive complex systems,
though he didn't recognize it Consider
The stiuctuies formed by traditional human practices are neither natuial in the sense
of being genetically determined, nor artificial in the sense of being the pioduct of in
telligent design, but the result of a process of winnowing and sifting, directed by the
differential advantages gamed by groups from practices adopted for some unknown
and perhaps purely accidental reasons Acquired cultural ti aits may affect phys
iological evolution-as is obvious in the case of language its rudimentary appear ance undoubtedly made the physical capacity of clear aiticulation a great advantage,
favouring genetic selection of a suitable speech apparatus
Nearly all writings on this topic stress that what we call cultuial evolution took place
during the last 1 per cent of the time during which Homo sapiens existed With re
spect to what we mean by cultural evolution in a nanower sense, that is, the fast and
4 Springer
This content downloaded from 188.72.126.108 on Sun, 15 Jun 2014 01:39:42 AMAll use subject to JSTOR Terms and Conditions
Public Choice (2008) 135 79-88 87
accelerating development of civilization, this is true enough Since it differs from ge
netic evolution by relying on the transmission of acquired properties, it is very fast,
and once it dominates, it swamps genetic evolution But this does not justify the mis
conception that it was the developed mind which in turn directed cultural evolution
mind and culture developed concurrently and not successively It is this cul
tural evolution which man alone has undergone that now distinguishes him from the
other animals To understand this development we must completely discard the
conception that man was able to develop culture because he was endowed with reason
(Hayek 1979, pp 155-156)
Interestingly, Hayek also anticipates the North objection about lack of feedback, and this
becomes one of the most interesting areas of Hayek's thought (as Caldwell, 2002a, 2002b
also argues) On the one hand, Hayek argues for something very close to group selection,
with "better" moral systems and social conventions outcompeting inferior ones On the other
hand, he recognizes that there is no telos, no intentionality or infallible human agency in ef
fecting cultural change In fact, in The Constitution of Liberty he clearly makes both points,
but there is a tension between them that only a close reading can resolve Society's perfor mance is a consequence of its ethical and moral practices
It is in the pursuit of man's aims of the moment that all the devices of civilization have
to prove themselves, the ineffective will be discarded and the effective retained But
there is more to it than the fact that new ends constantly arise with the satisfaction of
old needs and with the appearance of new opportunities Which individuals and which
groups succeed and continue to exist depends as much on the goals that they pursue,
the values that govern their action, as on the tools and capacities at their command
Whether a group will prosper or be extinguished depends as much on the ethical code
it obeys, or the ideals of beauty or well-being that guide it, as on the degree to which
it has learned or not learned to satisfy its material needs
And again, from Hayek (1988) "The curious task of economics is to demonstrate to men
how little they really know about what they imagine they can design "
4 Conclusion
I want to emphasize the nature of the contributions that I have claimed that Tullock has
made On its face, much of his work has led scientists and scholars in other disciplines to
recognize connections to economic reasoning that had until now escaped them This is an
important contilbution, and on its own would merit Tullock's strong candidacy for the Atlas
FSSO Award But there is rather more to be said, and I have tried in a simple way to say it in this essay
The real insight in use of survival as the metaphor foi selection in evolutional y processes is
not that we don't need to assume that animals think It is that we don't need to assume that
human beings think In fact, Hayek's real contribution is the notion that humans could not
have thought of market processes in all then complexity and precision (though he admits
that humans would be very proud of the achievement if they had thought of it') Tullock
has questioned whether the contributions of human thought and direction, in economics, in
bureaucracy, in the law, and in the direction of the scientific enterprise, really have anything at all to do with our success and prosperity
Those of us who know and love Gordon have to smile, when we think of his delight in
such a perverse conclusion The irony that will characterize Tullock's contribution can be
4y Springer
This content downloaded from 188.72.126.108 on Sun, 15 Jun 2014 01:39:42 AMAll use subject to JSTOR Terms and Conditions
88 Public Choice (2008) 135 79-88
simply stated It took a human mind of surpassing sharpness and breadth to realize that, by
and large, the individual contributions of the human mind have little to do with the pace or
direction of human progress
References
Ben-Porath, Y (1980) The F-connection families, friends, and firms and the organization of exchange Pop ulation Development Review, 6(1), 1-30
Buchanan, J ,& Tullock, G (1962) The calculus of consent Ann Arbor University of Michigan Press
Caldwell, B (2002a) The emergence of Hayek's ideas on cultural evolution In U Maki (Ed ), Fact and
fiction in economics models, realism, and social construction (pp 285-303) New York Cambridge
University Press
Caldwell, B (2002b) Hayek and cultural evolution In U Maki (Ed ), Fact and fiction in economics models,
realism, and social construction (pp 305-323) New York Cambridge University Press
Ferguson, A (1966) (1796) An essay on the history of civil science, Duncan Forbes edn Edinburgh Univer
sity Press
Greif, A (2006) Institutions and the path to the modern economy lessons from medieval trade New York
Cambridge University Press
Hayek, F A (1978) The results of human action but not of human design New studies in philosophy, politics, economics (pp 96-105) Chicago University of Chicago Press
Hayek, F A (1979) Law, legislation and liberty, Vol 3 The political order of a free people Chicago Uni
versity of Chicago Press
Hayek, F A (1988) The fatal conceit the errors of socialism Chicago University of Chicago Press
Holland, J (1998) Emergence from chaos to order Chicago Addison-Wesley North, D (1990) Institutions, institutional change, and economic performance New York Cambodge Uni
versity Press
North, D (1994) Economic performance through time American Economic Review, 84(3), 360
North, D (2005) Understanding the process of economic change Princeton Princeton University Press
Radford, R A (1945) The economic organization of a P O W Camp Econ mica, 189-201
Smith, A (1904) An inquiry into the nature and causes of the wealth of nations London Methuen and Co ,
Ltd , ed Edwin Cannan Fifth edition (1904/1776) http //www econlib org/hbrary/Smith/smWN html
Tullock, G (1971) The coal tit as a careful shopper The American Naturalist, 105, 77-80
Tullock, G (2002) Evolution and human behavior Journal of Bioeconomics, 4, 99-107
4 Springer
This content downloaded from 188.72.126.108 on Sun, 15 Jun 2014 01:39:42 AMAll use subject to JSTOR Terms and Conditions