> As far as the market goes, I think part of the problem is that most industries are not true free markets, AKA: high competition, low barriers to entry.
That sounds like the classic "if all you have is a hammer, all problems look like nails".
It's true that decentralised decision making can make good use of local information. But you're ignoring the kind of problems that are created by decentralisation itself, so they can't be fixed by more of it.
A system that is being optimized with only local information is prone to getting stuck in local minima, situations which can be very far from the true optimum.
To escape from the local minima you need to gather global information compiled from the whole system, and use it to alter the decisions that individual actors would make from just their locally achievable information.
That's the role of regulation, and why regulated markets work better than chaotic ones. Regulation can make individuals coordinate to achieve larger goals than what's possible without it. And to enforce effective regulation you need some kind of authority, which is centralised.
Of course that raises the question of how that authority is created and what goals does it set; for that, we get politics, with various groups trying to influence what the authority will decree and whose interests it will pursue harder.
That sounds like the classic "if all you have is a hammer, all problems look like nails".
It's true that decentralised decision making can make good use of local information. But you're ignoring the kind of problems that are created by decentralisation itself, so they can't be fixed by more of it.
A system that is being optimized with only local information is prone to getting stuck in local minima, situations which can be very far from the true optimum.
To escape from the local minima you need to gather global information compiled from the whole system, and use it to alter the decisions that individual actors would make from just their locally achievable information.
That's the role of regulation, and why regulated markets work better than chaotic ones. Regulation can make individuals coordinate to achieve larger goals than what's possible without it. And to enforce effective regulation you need some kind of authority, which is centralised.
Of course that raises the question of how that authority is created and what goals does it set; for that, we get politics, with various groups trying to influence what the authority will decree and whose interests it will pursue harder.