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I think it's going to be impossible to improve on price being determined atomically by buyers and sellers agreeing on an individual basis what something is wort
by prometheus76 7y ago
I think it's going to be impossible to improve on price being determined atomically by buyers and sellers agreeing on an individual basis what something is worth. That's the heart of what makes capitalism so effective. What this individual is willing to pay for that individual item is almost impossible to predict down to more than a pretty broad range of pricing. So many variables factor into what one person will pay for an item. And that determination changes even for that person depending on timing. I might be much more likely to make an impulse buy on payday than I am on the day before payday. The decisions around how much something is worth is too unpredictable to be centralized or predicted.
"Let the market decide" is a misdirection from what makes free markets great: individuals deciding, for themselves, whether to make a purchase after a seller has suggested (or demanded) a price.
No central planning algorithm can take the place of that, which is why attempts at centralizing an economy are always undermined by black markets.