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by betwixthewires
1808 days ago
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Optimal does not mean perfect. Externalities exist. For example, a meteor could hit the great plains and cause a famine. The market cannot solve that, but it can optimize available resources. Markets emerge spontaneously, like evolution. Evolution functions more optimally than if there were theoretically some god pulling levers. Not perfect, optimally. Markets function better than planned economies for the same reason, that the depth and dimension of the information needed real time does not allow for some entity to make the minutiae of the decisions that need to be made real time. Feedback loops in a complex dynamic multiparty system like a market or evolution sometimes do have much longer latency, but the mean latency of all information flows in both examples is vastly smaller than if every one of those flows had to go through a decision making entity first. |
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