A response to Gruber | What’s New with Wu

A response to Gruber | What’s New with Wu: "The study of centralized and decentralized decision structures in an economic system is hardly my invention.   It goes back to classic economic debates between Oskar R. Lange and Fredrick Hayek in the 1940s.  Lange was an advocate of centralized planning, and argued that closed, state-run economies would be more efficient than open / decentralized market economies.   Hayek, responding in 1945, argued that the advantage of an open system was largely informational.  A theoretically perfect central planner would, Hayek conceded, outperform an open system, but in a reality of imperfect information, the open market system could usually be expected to perform better. " 'via Blog this'