This is also true in the private sector. While large firms compete with each other, the internal organization of corporations is a lot closer to a centrally pla

This is also true in the private sector. While large firms compete with each other, the internal organization of corporations is a lot closer to a centrally planned economy. You request what you need from the central authority and you get allocated resources on the basis of calculations and needs. You don't usually (in most firms that are halfway decent places to work) compete with other departments but work towards a common goal (improved earnings). This is/was a subject of debate amongst economists actually, at least the very pro free-market ones: If market economies are better than centrally planned ones, why aren't firms with internal markets crushing the other, internally "socialist" ones? https://en.m.wikipedia.org/wiki/The_Nature_of_the_Firm https://en.m.wikipedia.org/wiki/The_Nature_of_the_Firm The orthodox answer is that market systems have higher transaction costs so for things you have to do very often (paying a salary) it's burdensome to use a market and easier to have long, somewhat undefined contracts.