Max quotes > Coase, in "The Nature of the Firm." (1937, Economica): > "Those who object to economic planning on the grounds > that the problem is solved by price movements can be > answered by pointing out that there is planning within > our economic system which is quite different from the > individual planning mentioned above [individuals who > "exercise foresight and choice among alternatives" -- mbs] > and which is akin to what is normally called economic planning."
this agrees with Marx, who saw planning as occurring inside the firm and unplanned markets outside the firm, though his discussion emphasizes economies of scale rather than transactions costs. Intelligent conservatives (e.g., Schumpeter) sometimes find themselves agreeing with Marx. (Of course, transactions costs can be a source of economies of scale.) Jim
