Production, Planning and Prices

George B. Richardson

Research output: Working paperResearch

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Abstract

Firms do not exist because of the cost of using the price mechanism, but because they enable actions to be carried out concurrently in conformity with a particular design. This concurrent coordination, which production requires, is distinct from the evolutionary coordination, which is the unintended consequence of market transactions. The two processes are alternatives only to a limited extent. Evolutionary adjustment cannot bring about concurrent coordination, and irreducible uncertainty limits the scope of the planning which does.
Original languageEnglish
Place of PublicationFrederiksberg
PublisherDRUID - Danish Research Unit for Industrial Dynamics
Number of pages21
ISBN (Print)8778730651
Publication statusPublished - 1998
Externally publishedYes
SeriesDRUID Working Paper
Number98-27

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