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In the Small group the individual can know the effects of his actions on his several fellows, and the rules may effectively forbid him to harm them in any manner and even require him to assist them in specific ways. In the Great Society many of the effects of a person's actions on various fellows must be unknown to him. It can, therefore, not be the specific effects in the particular case, but only rules which define kinds of actions prohibited or required, which must serve as guides to the individual.

Friedrich Hayek#123

Attribution disputed; shown as originally published.

SocietyKnowledgeLawCoordinationRules

About this quote

What does it mean?
In large societies, individuals cannot know the effects of their actions on others, so general rules are needed instead of specific commands.
In plain terms
In big groups, follow rules because you can't know everyone.
What can you take from it?
Use general rules in complex societies instead of specific orders.

Where it applies

  • legal systems
  • business ethics
  • community governance

Putting it to work

  • establish clear laws
  • limit personal discretion
  • design abstract rules

Questions to consider

  • How do you act without knowing outcomes?
  • What rules work best for strangers?

Another view

Specific regulations are sometimes needed to address unique cases.

More from Friedrich Hayek

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  2. I have come to feel strongly that the greatest service I can still render to my fellow men would be that I could make the speakers and writers among them thoro…

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  3. There are two ways of looking at the pattern of human activities which lead to very different conclusions concerning both its explanation and the possibilities…

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