Agency, adaptation, and discussion in liberal societies: Lessons from Frank H. Knight

Abstract

This article examines some of the distinct features of Frank H. Knight’s liberalism. While acknowledging the necessity of markets and competition, Knight critiques their potential to shape people’s preferences and foster problematic values, such as excessive rivalry and materialism, that threaten individual agency and social cohesion. For Knight, individual agency means more than merely exercising competence in achieving pre-determined preferences. He defends an expansive idea of agency as self-constitution—a dynamic process of self-creation and preference formation. This process contrasts with adaptation, a largely unconscious phenomenon through which individuals internalize the norms and values of their socio-economic environment. Following Knight’s analysis, the article identifies a dual challenge posed by adaptation: the risk of ethically questionable preferences arising under flawed norms and the lack of individual agency even under liberal ideals. Knight’s remedy lies in fostering deliberate, open-ended public discussion, where individuals engage in collaborative reasoning to develop and critically assess their preferences. The paper draws lessons from Knight’s analysis for institutional design and deliberative practices, while also highlighting questions for future research on how to implement Knight’s vision of discursive liberalism.