Central planning is unbeatable as a resource allocation mechanism for small systems. As you attempt to scale it up, it becomes terribly ineffective, to such an extent that decentralized control algorithms wastly outperform it, despite being inherently wasteful
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You don't need to look at country-scale economies to observe this effect (obviously free markets >> central planning), it applies even to large companies. Past a certain scale you need teams that compete against each other with overlapping products. But why?
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Replying to @fchollet
May I point you to Hayek's 1952 book The Sensory Order? It's mainly an information processing and signalling problem - short version: individuals and small teams taken collectively are better at timely classification, even though they may make the wrong decisions.
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Replying to @Entropisch
Haven't read it, thanks for the suggestion!
11:52 AM - 1 Jul 2018
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