Hayek and Kirzner at the keynesian beauty contest

William N. Butos, Roger Koppl

Research output: Contribution to journalArticlepeer-review

19 Scopus citations


According to Kirzner, entrepreneurs discover new things. Kirzner’s theory thus requires a theory of learning. Hayek provides one. His theory of mind suggests a theory of economic expectations and thus of learning. We briefly review a Hayekian theory of expectations. If Kirznerian entrepreneurs are Hayekian learners, then the larger institutional environment determines what they will learn and whether they will create a tendency toward equilibrium. The theory of’Big Players” shows that discretionary policies lead Kirznerian entrepreneurs (if they are Hayekian learners) to produce the sorts of results Keynes described as a beauty contest. Since “Keynesian” policies often entail discretion, we may draw the following inference: Keynesian policies produce a Keynesian economy.

Original languageEnglish (US)
Pages (from-to)257-275
Number of pages19
JournalJournal des Economistes et des Etudes Humaines
Issue number2-3
StatePublished - 1999
Externally publishedYes

ASJC Scopus subject areas

  • General Social Sciences
  • Economics, Econometrics and Finance(all)


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