> Don't corporations have growth targets and multi-year plans? Don't they (mostly) have a top-down management structure, where freedom of action and collective intelligence are constrained the further you get from the Central Committee (also known as the C-suite)?
Yes. IDK if Hayek addresses this or not, but Coase has a very good (and short) little book on the theory of the firm where he goes into exactly that. Basically, there are transaction costs to going to the market. So sometimes it's worthwhile to lose market feedback and centrally plan things.
Yes. IDK if Hayek addresses this or not, but Coase has a very good (and short) little book on the theory of the firm where he goes into exactly that. Basically, there are transaction costs to going to the market. So sometimes it's worthwhile to lose market feedback and centrally plan things.