Re: Re: Re: summary of calculationdebate

[Jim Devine <jdevine@xxxxxxxxxxxxxxx>]

Bill writes:
> Changes in the economy: how does a centrally planned system
> introduce/allow to be introduced innovative industries? Innovation tends
> to be high risk - can't be sure about inputs until some experience is
> accumulated; and can't be sure of people buying the product....

it's important to clarify the nature of "risk" here. There's risk to the
decision-maker (the emphasis above) and risk to others. In a profit-seeking
system, the decision-maker has the incentive to ignore the latter.

Jim Devine jdevine@xxxxxxx &  http://bellarmine.lmu.edu/~jdevine