Friedrich Hayek was awarded the 1974 Nobel Prize for Economic Sciences for his contributions to the analysis of money and the business cycle, and for his penetrating analysis of the interdependence of economic, social and institutional phenomena. Hayek was a polymath: he systematically analyzed...

1. Introduction -- 2. Two beginnings -- 3. The "Big 3." Simon, Katona, Leibenstein -- 4. It didn't just happen overnight -- 5. Leibenstein before X-efficiency theory -- 6. X-efficiency. An intervening variable -- 7. Empirical research on XE: : c 1967-1990 -- 8. XE among US financial institutions...

An exploration of Friedrich Hayek's contribution to the foundation of behavioural economics, and how his work interacted with and complemented that of his contemporaries. Chapters include detailed discussions of the concept of rationality, psychology and Hayek's philosophical theories as well as...