On Sat, Dec 27, 2025 at 01:41 PM, Charles wrote:

> 
> This is all technical stuff that leaves out the main class choice. Profit
> and capital accumulation are absent. The one mention of profit is
> mechanical, quoting Coase: "The main reason why it is profitable to
> establish a firm would seem to be that there is a cost of using the price
> mechanism"

I don't disagree with you on that point.  You might recall that in the "Why do 
Marxist economists avoid using math, and what kind of conclusions do they reach 
without it?" thread, I suggested that might be possible to create a partial 
synthesis of Marxian and Coasean economics. With regards to economic planning 
and the socialist calculation debates, we might attempt to create a synthesis 
where Coase would supply the mechanism (how coordination becomes cheaper), 
while Marxism would supply the critique (whose interests that coordination 
serves and why). The result is a framework that explains not only that digital 
planning can work, but why it becomes politically salient under capitalism. And 
yes, I would agree that Coasean economics by itself would lead to a 
technocratic approach to socialist economic planning.

A Marxist might appreciate that digital technologies lower transaction costs in 
ways that systematically favor large-scale coordination and undermine 
competitive markets. It's already the case that platforms, logistics networks, 
and data infrastructures socialize production in practice, even as ownership 
remains private. A Coasean reading explains this as a shift in the cost 
boundary between market exchange and internal coordination; a Marxist reading 
adds that this shift intensifies class contradictions by concentrating control 
over socially integrated production in private hands. Digital planning 
proposals like Cockshott’s thus appear not as utopian blueprints but as 
attempts to reclaim, for collective purposes, coordination capacities that 
capitalism itself has created to economize on costs. I that most of us here are 
aware of how both Amazon and Walmart have created platforms that allow them to 
manage electronically private economies that are as large and as complex as the 
economies of entire countries. Imagine what could be accomplished if that 
technological infrastructure was taken out of private hands and brought under 
social ownership.

The kind of synthesis being suggested here reframes socialist planning as 
neither a moral aspiration alone nor a purely technical fix, but as a 
historically grounded response to capitalist development. Coasean logic shows 
how algorithmic planning can outcompete markets in specific domains by reducing 
coordination costs; Marxism explains why these domains expand, because capital 
seeks to discipline labor, stabilize accumulation, and manage interdependence 
at scale. Digital planning thus becomes a form of democratic reappropriation: 
replacing privately controlled, cost-minimizing hierarchies with collectively 
governed ones, without abandoning Coase’s insistence that institutions must be 
judged comparatively, by their real informational and administrative costs 
rather than by abstract ideals.


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