chapter  5
THE IMPLICATIONS OF HAYEK II’s PHILOSOPHY AND METHOD FOR HIS SOCIO-ECONOMIC THEORY 58
ByKnowledge
Pages 20

The philosophical and methodological positions that Hayek II adopts are in many respects inconsistent with, and thereby bring him into conflict with, the positivism that underpins the kind of substantive economics he is doing in the period up to 1936. It causes him to re-examine some of the basic building blocks of economic theory, most notably in the area of knowledge. Once Hayek recognises that the presumptions made by mainstream economists about knowledge are fundamentally erroneous, it casts doubt on other issues, primarily equilibrium, the notion of agency as Homo economicus, and creates ambiguity in his understanding of the telecom system.