Relational Knowledge as an Aspect of Local Knowledge

In this paper, I explore a heretofore undiscussed aspect of Hayekian local knowledge, which I call relational knowledge. I develop relational knowledge through the use of Smithian notions of sympathy. Then, I discuss how relational knowledge operates in competition and entrepreneurship. To demonstrate relational knowledge in action, I discuss two forms of interventionism which could disrupt the formation of relational knowledge: industrial planning and school choice.