ABSTRACT
The free market economy creates a polycentric system for coordinating economic processes. However, the ability of market mechanisms to coordinate individual actions does not imply the occurrence of similar effects in the case of polycentric systems functioning outside the area of private property-based interactions. This raises the question of the extent to which polycentric systems of coordination of the behaviour of agents can be created and can also function outside the free-market framework. This chapter indicates the possibility of applying spontaneous order theory to the analysis of this issue. Among others, this leads to a critique of the approach formulated by public choice theory. The spontaneous order theory indicates that the main issue in the problem of coordination is not the mechanism of competition, but the availability of information. This leads to a rejection of the description of democratic systems in terms of market competition mechanisms. Taking note of radical human ignorance indicates the role of beliefs and ideas in the interpretation of reality and decision-making processes.
The chapter also identifies the normative implications of cognitive limitations and human creativity. This allows us to formulate arguments against the concept of the veil of ignorance as a mechanism for the formation of social norms and rules, signalling the risk of the abuse of reason.
