3 ms·
> Ultimately the more centralized the power the less efficient the system is. Markets are great because they push decision making down to the fringes, closer t
by soperj 4y ago
> Ultimately the more centralized the power the less efficient the system is. Markets are great because they push decision making down to the fringes, closer to where the ground truth is. With highly centralized systems there is a bottleneck both in getting information to the decision makers, but also in overwhelming those decision makers with too much detail and losing fidelity.
Wouldn't this point to CEOs not being super effective?
- ozmodiar 4y agoI think it's a careful balance. You need the ability to take decisive action, but at the same time the decisive action might just kill the company. I think the solution is supposed to be that you have multiple companies and when one dies off due to stupid missteps another is there to take its place. Unfortunately it appears that companies keep consolidating and gobbling each other up, which I don't think is healthy for society.
- jandrese 4y agoSometimes the best action for a company to take is the one that doesn't maximize short term profit. That's where a CEO can shine. Markets are like genetic algorithms, they are prone to getting hung up on local maxima.