. ♪ his name was friedrich hayek... ♪ >> reporter: head likes by merle hazard . ♪ w-rpbd with government.. >> reporter: this was a take off on the book "road to serfdom ." ♪ that's the road to serfdom, friedrich hayek size. >> the world of economics is suffering no shortage of words that can be made to sound dirty. >> reporter: next up, harvard's jodi beggs. she's been straining to make her mark as an economic teacher. >> i remembered a tried-and-true business principle. that principle being "sex sells." and economists do it with models was born. (laughter). >> reporter: speaking of smut, emory professor hugo mialon gave aning actual academic paper that might make even noneconomists blush. >> i can't believe it but i'm going to present a paper on the economics of faking ecstasy. this line of inquiry was suggested to me by none other than my lovely wife and colleague see mialon who is in the audience tonight. hi, sweetie. (laughter). >> reporter: don't worry, we'll spare you the intimate details and cut right to the professor's conclusions. >> the rational model performs quite well, even

>> guest: friedrich hayek was, i say, the most important philosopher of dynamism.e was a -- an austrian-born economist and social philosopher who ventured even into issues of cognitive psychology and oth -- other real -- really renaissance man of ideas, who was a great defender and articulate -- well, not just a defender but an explorer of what it means to have a market economy and a -- and a free society. and many of the ideas in the book about knowledge come from him because he was one of the first people to articulate the notion that what a market does is act as a telecommunications system for kno -- dispersed knowledge. he actually used that analogy, and he -- he was a nobel laureate. he died in, i believe, '92 or '93. this would be hi -- the 100th year of his birth. c-span: you have a quote in your book, 'why i am not a conservative,' and i want to read it. "as has often been acknowledged by conservative writers, one of the fundamental traits of the conservative attitude is a fear of change, a timid distrust of new -- of the new as such, while the liberal posi