I understand.
Emir İnanç
1

Aye very good and therein lies the rub! It’s not a question of state vs market. They’re good at different things and terrible at others. This is very much what Oliver Williamson won his Nobel Prize for. Centralised command is necessary when you’re facing an immediate, simple and well-defined problem which is existential and has to be dealt with immediately – this is why militaries aren’t self-organisational. Or, for that matter, many companies (which face existential threats all the time). Even Google has times like when the Chinese were hacking it that the board took control. When you’re facing an existential threat you can’t trial and error and debate to find the best solution, you have to do the best you can, and often make bad mistakes but just “scrape through” as they say. But centralised command is awful at complex, multiple-objective tasks like organising an economy which require collective knowledge be brought to bear. And incidentally this is why militaries and companies also have a form of dispersed knowledge, decentralisation and self-organisation in the chain of command.

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