Hedged.Biz

  • Disclaimer
  • About Us
  • Articles
  • Home
  • Articles
  • Information, Efficiency and Scale
February 25, 2021

Information, Efficiency and Scale

Information, Efficiency and Scale

by Burnham Banks / Monday, 30 December 2019 | 6:35 pm / Published in Articles

Central planning is superior to free markets if the central planner has perfect information, and acts in good faith. Free markets are better when information is imperfect. When information is localized by a factor or location, decentralized groups can process information more effectively. These groups, can be regarded as centrally planned cells within a neighborhood in which information is close to perfect. They are then able to optimize locally and then interact with the rest of the system on the basis of the price mechanism. 

In reality we do not have a free market system. What we have are mostly centrally planned firms which interact with the economy on a market based system.

The rise of mega sized corporations is a manifestation of better information. For a given quantity and quality of information, there is an optimal firm size. Any firm which grows beyond this size is at risk of failure.

Entire economies may attain a certain level of information quantity and quality that makes central planning superior to decentralised market based organisation.

 

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • WhatsApp
  • Email
Information, Efficiency and Scale
http://www.hedged.biz/information-efficiency-and-scale/
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • LinkedIn
  • Digg
  • Del
  • StumbleUpon
  • Tumblr
  • VKontakte
  • Print
  • Email
  • Flattr
  • Reddit
  • Buffer
  • Love This
  • Weibo
  • Pocket
  • Xing
  • Odnoklassniki
  • ManageWP.org
  • WhatsApp
  • Meneame
  • Blogger
  • Amazon
  • Yahoo Mail
  • Gmail
  • AOL
  • Newsvine
  • HackerNews
  • Evernote
  • MySpace
  • Mail.ru
  • Viadeo
  • Line
  • Flipboard
  • Comments
  • Yummly
  • SMS
  • Viber
  • Telegram
  • Subscribe
  • Skype
  • Facebook Messenger
  • Kakao
  • LiveJournal
1

Ten Seconds Into The Future

“Hello. I’m Burnham Banks and I studied economics in the late 80s and early 90s. I’m still studying economics today and am still no wiser. This blog is a journal, a record of my thoughts and experiences. If we are destined to repeat our mistakes, we should at least repeat them faithfully. If not, then perhaps the past is a mischievous guide and we should try something new.”

Meta

  • Entries RSS

Featured Posts

  • Market Timing. Impossible and Important all at once.

  • Information Efficiency and Firm Size. Implications for Growth.

  • The Focus on Inflation

  • Inflation and Secular Stagnation. Causes and Remedies.

  • Ten Seconds Into The Future 2020 07

  • Thoughts About FX. USD vs RMB.

  • Deflation Then Inflation

  • A Recovery Investment Strategy for COVID19

  • Impact Investing

  • Don’t Stand So Close To Me. (With apologies to Mr Gordon Sumner.)

  • The Outlook Under The Shadow of COVID 19

  • COVID19 Investment Strategy Response. General non Specific.

  • COVID 19, Contagion, Economic Consequences and Risks. 2020 03.

  • COVID 19 and Recession. Mitigating The Economic Cost.

  • Update on Economic and Market Outlook. COVID 19.

  • Artificial Intelligence May Be Upon Us

  • Energy.

  • ESG Investing Is Hard To Do.

  • 2020 Investment Strategy. Generally Cautious.

  • Gold. Political Risk Hedge. The Schadenfreude Trade.

  • 10 Seconds Into 2020. Geopolitics and US Elections.

  • China and the US. Is the Belt and Road Initiative China’s Marshall Plan?

  • Efficient Oppressors

  • Fools are to Society as Carbon Control Rods are to Nuclear Reactors.

  • US Drug Approval Process – Extracted from various sources. For Personal Reference Only.

Categories

  • Articles

Archives

  • RSS FEED

Copyright 2018 © Hedged.Biz All rights reserved

TOP

Send this to friend