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"IBM and Intel have centralized planning on an immense scale" Right. In fact, is there any human group that don't have some kind of central planning? Ironical
by RobertoG 10y ago
"IBM and Intel have centralized planning on an immense scale"
Right. In fact, is there any human group that don't have some kind of central planning?
Ironically, the only kind I can think of is the anarchist meetings where, somebody told me, nothing is never decided.
- pjc50 10y agoThis is where people should read Coase rather than Hayek, who actually addresses the question of why companies exist and are centrally planned.
- nickik 10y agoYes. I have pointed to Law&Economics (invented by Coase for those who don't know) multiple times in this thread. I would however also say that Hayek has more to say on the topic and that the parent comment mischaracterized Hayek's arguments. Little triva, Coase was a student at LSE when Hayek was there in the 30s. They are two of the best and most important economists of this century, both should be studied in depth.
- thehardsphere 10y agoTL;DR version: Companies exist to reduce the transaction costs of coordinating many people independently to achieve something.