Quarterly Journal of Austrian Economics
Competition as a Discovery Procedure
Volume 5, No. 3 (Fall 2002)
An indirect re-introduction of the market mechanism for determining the distribution of workers among industries and firms would bring with it a considerable acceleration of the increase of the level of average real wages, along with a stepwise decrease in the real wages of individual groups. Some measure of this kind, the author believes, is today the only remaining way out of the increasing rigidity of the wage structure. It seems that labor can only gain from such a solution, but he realizes of course that trade union officials would lose through it a large part of their power and would therefore reject it completely.
Cite This Article
Hayek, F.A.. "Competition as a Discovery Procedure." The Quarterly Journal of Austrian Economics 5, No. 3 (Fall 2002): 9–23.