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Yes, it´s a lot more complicated than that. Fundamentally, it´s an issue of scale. It can be proven that central planning is the least efficient form of organi
by neffy 10y ago
Yes, it´s a lot more complicated than that.
Fundamentally, it´s an issue of scale. It can be proven that central planning is the least efficient form of organisation at scale, because the information capacity of a hierarchically organised network will always be less than that of a mesh or federal mesh system.
However for small systems, those network capacity limits aren´t reached - so it doesn´t matter, and there´s also a joker in the pack for mesh networks, in that if they can´t self-regulate their traffic, the resulting broadcast storm (which socially we are now in worldwide) will drive their good-put (user traffic) to very low levels.
Besides the information capacity issue though, there are also considerations of command and control, so if you have a central planner that really knows what they´re doing (and the issue of information capacity is essentially that most central planners can´t), then that topology will be advantageous. Especially in competition with other centrally planned organisations - like Microsoft say.
- unflipped 10y agoPrecisely this. Read Hayek's "The Pretense of Knowledge" for a more complete understanding of this idea: http://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1974/hayek-lecture.html http://www.nobelprize.org/nobel_prizes/economic-sciences/lau...
- Animats 10y agoWe have so much information capacity now that's no longer an issue. Gosplan, the Soviet state planning apparatus, ran on an monthly information cycle and a yearly planning cycle. WalMart runs on a daily information cycle and a weekly planning cycle. Amazon is near real time. China, interestingly, goes to the opposite extreme. China is now on the 13th 5-year plan since the Revolution.[1] It's a set of 32 general policy goals to be emphasized for the next five years. These seem general, but this overall guidance determines on what the government spends time and resources. [1] http://news.xinhuanet.com/english/photo/2015-11/04/c_134783513.htm http://news.xinhuanet.com/english/photo/2015-11/04/c_1347835...
- dilemma 10y agoThat's not the point. That information needs to be processed by a human being who then outputs decisions. If you have too much "big data", that data becomes useless because it overwhelms thereby making itself useless.
- Animats 10y agoOnly some of the information needs to be processed by a human being. How much inventory to carry of each item has been automated in retail for decades. Only unusual situations and new items need human attention.