The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Spontaneous Order

  • Peter Boettke
  • Jennifer Dirmeyer
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2488

Abstract

A spontaneous order is a pattern that is recognizable with human reason but is not created by design. The market process is a spontaneous order that is created by the process of entrepreneurship and competition. A spontaneous order is self-correcting. Prices are formed through the actions of self-interested individuals in the market, buying and abstaining from buying. They make possible an extended order so complex that it is able to communicate information worldwide to producers and consumers alike so that production plans may be coordinated to consumer demands despite any change in resources, tastes or income.

Keywords

Entrepreneurship Invisible hand Language Markets Money Price system Property rights Rules of behaviour Social norms Spontaneous order 
This is a preview of subscription content, log in to check access

Bibliography

  1. Buchanan, J. 1997. There is science of economics. In The collected works of James M. Buchanan, Vol. 12. Indianapolis: Liberty Press.Google Scholar
  2. Friedman, M., and R. Friedman. 1980. Free to choose. New York: Harcourt Brace Jovanovich.Google Scholar
  3. Hayek, F.A. 1948. The use of knowledge in society. In Individualism and economic order. Chicago: University of Chicago Press.Google Scholar
  4. Hayek, F.A. 1960. The constitution of liberty. Chicago: University of Chicago Press.Google Scholar
  5. Hayek, F.A. 1967. The results of human action but not of human design. In Studies in philosophy, politics and economics. London: Routledge & Kegan Paul.Google Scholar
  6. Hayek, F.A. 1973. Law legislation and liberty, volume 1: Rules and order. Chicago: University of Chicago Press.Google Scholar
  7. Kirzner, I. 1973. Competition and entrepreneurship. Chicago: University of Chicago Press.Google Scholar
  8. Kirzner, I. 1992. The meaning of the market process. New York: Routledge.CrossRefGoogle Scholar
  9. Menger, C. 1871. Principles of economics, 1981. New York: New York University Press.Google Scholar
  10. Read, L. 1958. I, pencil: My family tree as told to Leonard E. Read. The Freeman: Monthly magazine of the foundation for economic education, December. Reprinted in The Freeman 46(5) (1996).Google Scholar
  11. Smith, A. 1776. An inquiry into the nature and causes of the wealth of nations. Chicago: University of Chicago Press 1976.CrossRefGoogle Scholar
  12. Smith, V. 2003. Constructivist and ecological rationality in economics. American Economic Review 93: 465–508.CrossRefGoogle Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Peter Boettke
    • 1
  • Jennifer Dirmeyer
    • 1
  1. 1.