Re: The Road to Serfdom

[Eubulides <paraconsistent@xxxxxxxxxxx>]

"Markets, Hierarchies, and Information: On a Paradox in the Economics of
Organization," [Louis Putterman, Journal of Economic Behavior and
Organization 26: 373-90, 1995].

"In this paper I will argue that firms often do have a comparative
advantage both in recognizing and eliciting differentiation of input
characteristics. However, I will suggest that this advantage results not
so much from their hierarchical form of organization as from their ability
to support long term association by providing for mutually  beneficial
sharing of the rents of joint production by suppliers of interspecialized
resources. Larger hierarchies can be expected to lose this advantage both
because of the information overload problems referred to by students of
planned economies, and because of the increasing cost of negotiating and
sustaining cooperation between larger sets of input suppliers. Hierarchy
as such thus has no clear informational advantage over market exchange,
and multi-tier hierarchy has a distinct*dis*advantage...the informational
advantages of firms are a product of their ability to encourage
association and information sharing, rather than of the flat powers
inherent in hierarchical relations."






----- Original Message -----
From: "Michael Perelman" <michael@xxxxxxxxxxxxxxxxx>
To: <PEN-L@xxxxxxxxxxxxxxxx>
Sent: Thursday, August 07, 2003 2:48 PM
Subject: Re: [PEN-L] The Road to Serfdom


> Oh, my God!  I opened up that thread again!!!!
>
> On Thu, Aug 07, 2003 at 02:36:51PM -0700, andie nachgeborenen wrote:
> > --- Michael Perelman <michael@xxxxxxxxxxxxxxxxx>
> > wrote:
> > > In my new book, I have a short section on Mises v.
> > > Neurath, where the
> > > dispute began, just as Jim said.  Neurath was a
> > > plannist-marxist.
> >
> > Who thought that the plan should mimic market outcomes
> > . . .
> >
> > On the basis of actual planning experience in postwar
> > Poland, he later became much more of a market
> > socialist.
> >
> > jks
> >
> > __________________________________
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> --
> Michael Perelman
> Economics Department
> California State University
> Chico, CA 95929
>
> Tel. 530-898-5321
> E-Mail michael@xxxxxxxxxxxxxxxxx