Jamal Awil

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Close-knit groups develop wealth-maximizing social norms [causal]

A similar thesis is advanced by Robert C. Ellickson, A Hypothesis of Wealth Maximizing Norms: Evidence from the Whaling Industry, 5 J. L. Econ. & Org. 83, 84 (1989), where he explores the "hypothesis that when people are situated in a close knit group, they will tend to develop for the ordinary run of problems norms that are wealth maximizing." For a broader and more theoretical articulation of this thesis, see generally, John Gray, Hayek on Liberty (2d ed. 1986), discussing Hayek's theory of spontaneous order and the "competitive selection of rules and practices," particularly, "Hayek's assertion that the evolution of culture may itself be fruitfully investigated in terms of the competition between different traditions or practices, with a natural selection among them occurring which is at least partly to be explained by their relative efficiency as bearers or embodiments of knowledge."

XREF: Connects to Hayek's theory of spontaneous order and cultural evolution through competitive selection of practices.

Lisa Bernestein, Opting out of the Legal Sys…, loc. 22