4 ms·
Is that always true? What about in R&D departments or startups? Wouldn't the free market of a firm be guided by personal reputation?
by Dracophoenix 5y ago
Is that always true? What about in R&D departments or startups? Wouldn't the free market of a firm be guided by personal reputation?
- WJW 5y agoIt seems logical to me that free markets are also not necessarily very efficient at price discovery, there are after all a ton of costs involved in price discovery, information gathering about market counterparts to see if they are trustworthy, drafting and policing contracts, etc etc etc. However, even with these added costs markets are the only thing we've discovered that still works well beyond a certain scale. For R&D departments and startups, plan economies can still work because the complexity is still small enough that humans can comprehend it.