Analogous Models of Complexity: The Austrian Theory of Capital and Hayek’s Theory of Cognition as Adaptive Classifying Systems

When understood as an inevitable inconsistency of individual plans,disequilibrium is not only a necessary condition for the existence, and hence understanding, of the market process as we know it, it is also theglue connecting three other "Austrian" themes. In equilibrium hetero­ geneity of resources would have no strategic significance, specific andprivate knowledge would be much less problematic, and no profits net ofcontractual rent payments would be earned. In the real world ofdisequilibrium firm differences are not a mystery, rent is not an indication of inefficiency or monopoly power, and there is room to analyze, admire, reward, and consult about successful business strategy. Rent appropria­ tion comes from ownership of valuable resources. And a successfulstrategy, one that earns enhanced rents, is one that acquires ownership of valuable and value-creating resources. Such a strategy is dependent for its success on superior vision (or luck), something which cannot exist in