Kirzner on Social Evolution, Menger, etc.
In "Knowledge Problems and Their Solutions," Kirzner makes the important distinction between type A and type B knowledge problems. Type A problems involve undue optimism, and are self-correcting: if I think I can sell my programming services for $1 million per hour, I surely will be disappointed, and, if wise, I will lower my price. My very attempt to act on my over-optimistic beliefs reveals their falsity. Type B problems, on the other hand, involve undue pessimism, and are not self-correcting. I may believe that my current boss, who is paying me $50 per hour, is the best employer I can find. But, unbeknownst to me, just down the block is someone who would happily pay me $100 per hour, if he knew of my existence . And I would happily go work for him, if I knew of his . For type B problems to be "corrected" requires entrepreneurial action, perhaps, say, a job placement firm that will alert both the potential new employer and me to each other's presence...