Mechanism Design and Hayek’s Challenge for a Liberal Economic Order


This conference provided an opportunity to discuss the implications of mechanism design within the theoretical context of Mises’s and Hayek’s contributions to the socialist calculation debate, as well as the applied contexts of experimental economics, auction theory, and the allocation of the electromagnetic spectrum in the United States and Guatemala.


From Liberty Fund


by By Ludwig von Mises
Translated by J. Kahane
Foreword by F. A. Hayek

More than thirty years ago F. A. Hayek said of Socialism: “It was a work on political economy in the tradition of the great moral philosophers, a Montesquieu or Adam Smith, containing both acute knowledge and profound wisdom. . . . To none of us young men who read the…

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Additional Readings

Coase, R. H. "The Federal Communications Commission." The Journal of Law & Economics II (October 1959): 1-40. (accessed July 17, 2009).

Ibaruguen, Giancarlo. "Spectrum Management for a Converging World: Case Study in Guatemala." International Telecommunications Union, Universidad Francisco Marrogquin, Guatemala, February 2004. (accessed July 17, 2009) .

McAfee, R. Preston and John McMillan. "Analyzing the Airwaves Auction." Journal of Economic Perspectives 10, no. 1 (Winter 1996): 699-738. (accessed July 17, 2009).

McAfee, R. Preston and John McMillan. "Auctions and Bidding." Journal of Economic Literature XXV (June 1987): 699-714. (accessed July 17, 2009).

Myerson, Roger B. "Fundamental Theory of Institutions: A Lecture in Honor of Leonid Hurwicz." North American Meetings of the Econometric Society, University of Minnesota, June 22, 2006.`rmyerson/hurwicz.pdf (accessed July 17, 2009) .

Prize Committee of the Royal Swedish Academy of Sciences. "Scientific Background on Mechanism Design Theory." Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2007, Stockholm, Sweden, October 15, 2007. (accessed July 17, 2009) .

Schumpeter, Joseph. Capitalism, Socialism, and Democracy. New York: Harper & Row Publishers, 1975, 1976.

Smith, Vernon L. "Markets as Economizers of Information: Experimental Examination of the "Hayek Hypothesis"." Economic Inquiry XX (April 1982): 165-178.