This assumes a theoretical optimal central planner, a superintelligent BDFL of sorts. Libertarian thinking is that in practice humans are so bad at management

This assumes a theoretical optimal central planner, a superintelligent BDFL of sorts. Libertarian thinking is that in practice humans are so bad at management that every time we tried central planning it came up even worse than non-optimal Nash Equilibria (which are the failure mode of non-centrally-managed agent systems.) Libertarians would say that no dictator or government in history turned out to know better than The Market. That The Cost of Regulation is higher than The Cost of Anarchy. Of course, both costs are high for some problems and low for others, and the solution to practical problems usually lies at neither this extreme nor that one.