Robin,

I am shocked that you would claim that academics is an unregulated 
industry ... shocked.  

If I told that there was an organization that had the following 
characteristics what you say:

1. The owners do not manage the system

2. The workers make most of the managerial decisions

3. Consumer do not pay the full cost of the service

Well, welcome to the modern public university.

Outside of the role of public universities, there is also state funding 
of most private universities (at the research level).

To be clear --- I am not whinning about the place of Austrians in the 
world of ideas --- some of it is because of "inefficiencies" other 
explanations are due to the incompentence of the leading exponents of 
the Austrian school.

I am simply making a claim about the disciplinary devices within one 
set of institutional setting and another.  Academic institutions, I 
claim (an empirical claim), do not penalize bad ideas as effectively as 
say a market economy would.  At best it is a metaphor to say that the 
academic disciplines operate within a "market for ideas".  And the 
metaphor is only partially correct.

On the smarts issue --- I actually think we should value judgment and 
wisdom more than smarts, though smarts is easy to identify and 
judgement and wisdom are often only recongize ex post (in other words, 
cannot be recognized at the time it would need to be recognized for 
reward mechanisms to work).

Prof. Peter J. Boettke, Deputy Director
James M. Buchanan Center for Political Economy
Department of Economics, MSN 3G4
George Mason University
Fairfax, VA 22030
Phone: 703-993-1149
FAX: 703-993-1133
Email: [EMAIL PROTECTED]
HomePage: http://www.gmu.edu/departments/economics/pboettke

Editor, THE REVIEW OF AUSTRIAN ECONOMICS


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