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Purpose – Overview of Hayek's cognitive theory and the contributions of chapters.

Methodology/approach – Perspective on significance of Hayek's cognitive theory for the social sciences.

Findings – Hayek's cognitive theory provides insight into his oeuvre; more importantly, it is relevant for social theory in its own right.

Research limitations/implications – Hayek's cognitive theory warrants further attention by economists and social theorists interested in evolutionary social processes.

Originality/value of paper – To counter a widespread view that the contribution to economics and social science of Hayek's cognitive theory is largely confined to methodology. Hayek's cognitive theory also provides a useful framework for furthering the understanding of evolution within the social realm.

Hayek was a firm believer in the effect of evolution on human behavior. This was a real advance since he wrote in a time when most social scientists believed in the “blank slate” (Pinker, 2002) and denied the influence of biology on human actions. Moreover, Hayek got the basic outline of the problem right. Most of human existence has been spent in small groups (25–250 members) and many of our tastes and preferences have evolved in that setting. These tastes and preferences are not always adapted for modern mass societies with market economies and extensive division of labor and exchange. However, evolutionary science and particularly its applications to human beings have advanced since Hayek wrote, and some of the details of his analysis are no longer consistent with current theories.

Purpose – The goal of this chapter is to contribute toward an understanding of Hayek's book “The Sensory Order.” It focuses on his concept of dispositions which influence perception as well as action. The dichotomy between the phenomenal and the scientific world which Hayek stresses throughout his works is based on the existence of such dispositions.

Approach – Hayek's cognitive writings such as The Sensory Order, “Rules, Perception and Intelligibility” (1963), “The Theory of Complex Phenomena” (1964), and “The Primacy of the Abstract” (1969) are the main resources to explain his cognitive theory.

Findings – Hayek's concept of dispositions facilitates re-interpretation of the term “dispersed knowledge.” Also, Hayek's Theory of Cultural evolution is seen as an evolution of dispositions, which stands in line with his view on the concurrent development of mind and culture.

Import of findings – The chapter offers a cognitive interpretation of Hayek's theory of government, depicting governmental action and rule-setting as spontaneous as well as deliberate processes.

The modern revival of “Austrian economics” dates to the South Royalton conference of 1974 (Vaughn, 1994, pp. 103–111). At that time, neoclassical orthodoxy excluded evolutionary concepts. It was, in Ludwig Lachmann’s memorable phrase, “late classical formalism” (1977, p. 35). Opposition to neoclassical orthodoxy was part of the definition of Austrian economics. It formed part of our identity. Today it is no longer clear what “orthodoxy” is or whether current mainstream economics is “neoclassical” at all (Colander et al., 2004). One of the more salient changes in mainstream economics over the last 30 years is the introduction of evolutionary ideas. Mainstream economics is rich with evolutionary concepts. Evolutionary game theory, for example, is certainly a part of today’s standard toolbox. Thirty years ago, it did not even exist.¹ Some of the evolutionary ideas entering mainstream economics are similar or identical to ideas from the Austrian tradition. In this situation, it is no longer clear what the Austrian differentiae are. I hope this volume will help to sort out some of the issues relating to Austrian economics and one group of evolutionary ideas, namely, those of evolutionary psychology.

Consumer behavior, in the context of general insurance, is worth exploring to formulate growth strategies for insurance sector in India in light of the proposed structural changes. Indian consumers attract global players due to untapped potential and favorable policy measures initiated for higher foreign direct investments. The purpose of this paper is to understand the prevailing level of service quality as perceived by insurance customers in India in the presence of certain contextual antecedents and moderators.

Perceptions about constructs like customer risk dispositions, awareness, past experiences, customer involvement, choice overload, service quality and satisfaction of 256 customers were collected using a questionnaire survey. A variance-based structural equation modeling helped to identify significant linkages among the constructs.

In order to assess service quality levels, a 15-item scale having the infrastructure, employees, agents and product dimensions was found valid and reliable. Choice overload and customer involvement were found to moderate the influence of antecedents and service quality, respectively. The influence of choice overload on quality perceptions is insignificant. The study concludes that the existing risk beliefs are insufficient, and experiences have less predictive contribution to quality perceptions.

Theoretically, this study examined the process of satisfaction development from service quality perceptions. This study offers insights for developing theories to portray future consumer behavior where more dependence of self-service technologies is expected to dominate service delivery mechanisms in insurance. The study informs that general insurance customers in India prefer more diversified products, more customer-centric employees/agents and better technical quality.

The findings of this study contribute to the understanding of the prevailing insurance consumer behavior in the general insurance sector of India and help insurance service providers in streamlining their strategies for better insurance penetration and reduced lapse rate.

This study helps in understanding the emerging trends in general insurance buying behavior in India.