The efficiency properties of institutional evolution: with particular reference to the social-philosophical works of F. A. Hayek

In an overall sense, the purpose of this study is to examine closely the evolutionary process with respect to institutional evolution. The position which holds that the evolutionary process generates efficient institutional forms is seen to be dependent upon a certain set of conditions being met. In the more general case, however, the evolutionary process oftentimes generates outcomes that are unintended, inefficient, and undesirable; consequently placdng man in what has been referred to as a “social dilemma." At base, this outcome is a result of simple utility maximization on the part of individuals. Policy prescriptions and attitudes towards policy are likely to change once this is noted and understood.