The Use of Surveillance in Market Society

26 Pages Posted: 7 Nov 2023

See all articles by Kristen Collins

Kristen Collins

George Mason University - Mercatus Center

Date Written: February 24, 2023

Abstract

The concept of “surveillance capitalism” pervades debates about the politics and ethics of the digital technology industry that relies on extensive data collection about users. To justify her use of the term, as opposed to simply “capitalism,” Shoshana Zuboff emphasizes its supposed departure from Adam Smith’s and F.A. Hayek’s accounts of political economy, particularly Smith’s metaphor of the invisible hand and Hayek’s discussion of the knowledge problem. Hayek argued the market process was conducive to liberty because it enables social coordination while allowing individuals to pursue their independent ends using the tacit knowledge created through exchanges and communicated via prices. To assess Zuboff’s argument, I examine Hayek’s discussions of technological change, including advertising and communication technologies. I show how the market functions like a communications technology in Hayek's account. As such, it should be compared to other institutions that Hayek compares to machines or devices: democracy, the liberal state and Rule of Law, and money. Finally, I show how the diffusion of influence enabled by the liberal state and market process is the key to Hayek’s theory of the relationship between the market and freedom as exemplified by his refutation of John K. Galbraith’s critique of advertising.

Keywords: surveillance capitalism, F.A. Hayek, rule of law, markets

Suggested Citation

Collins, Kristen, The Use of Surveillance in Market Society (February 24, 2023). Available at SSRN: https://ssrn.com/abstract=4369653 or http://dx.doi.org/10.2139/ssrn.4369653

Kristen Collins (Contact Author)

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

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