by Maximilian Kasy · 15 Jan 2025 · 209pp · 63,332 words
education or the workplace are democratically governed. In such a world, different decisions would be made about AI objectives. Some economists might object that the price mechanism, using prices and markets to allocate resources, would be more suitable for governing decisions about AI objectives. We might have profit-maximizing companies who determine
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for possible costs. The prices for benefits and costs, so the logic goes, would align profit maximization—and thus AI objectives—with social welfare. The price mechanism, however, does not seem suitable to govern the socially consequential decisions of AI discussed throughout this book. No price governs the selection of news on
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process or on mental health. The admission of students to universities is not primarily governed by a price mechanism, nor should it be. Price mechanisms do not address the distributional consequences of individualized, monopolistic pricing. And no price mechanism mediates algorithmic decisions about which households to bomb in Gaza. Data collection and algorithmic decision-making are
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–43, 191–92; sample problems for, 10. See also means of prediction; supervised learning prediction functions, 46–47 preferences, 77–80. See also revealed preferences price mechanism, 112–13 price setting, 85, 88–89, 132–33, 147, 169, 188 primary goods, 80 primitive accumulation, 82–83 privacy: of data, 15–16, 55
by Quinn Slobodian · 16 Mar 2018 · 451pp · 142,662 words
and war collectivism.”6 Foreign-owned property was seized, command economies replaced market supply and demand, centralized regimes of rationing and resource allocation displaced the price mechanism, and national governments and planning boards demolished the walls of corporate secrecy, intruded into private accounts and affairs of business to gather data about production
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use of their resources. For prices to serve their function, however, they must not encounter resistance. He gave the specific example of labor: “Here the price mechanism is partially switched off, and real frictional losses can occur in the form of strikes and unemployment.” Luckily, he pointed out, “labor was the most
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actual mass of unemployed usually rotated in and out as people moved from position to position. In the demand for the “faultless functioning of the price mechanism,” Haberler conjured an image reminiscent of an enormous clockwork or factory apparatus, shuttling components from one location to the other. He cited earlier thinkers like
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Kong. Deng Xiaoping’s reforms started a process toward China’s own form of nonmajoritarian capitalism, slowly introducing market freedoms without expanding political representation. The price mechanism was permitted without the mechanism of popular sovereignty—the multiparty election. In 1979, China opened the country’s first export processing zones in the Pearl
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of nested spaces of regulation. From this perspective the WTO looked like a triumph, offering the rule of law and calibrating the circuitry of the price mechanism to allow for ever more precise reception of information. Yet even as Hayek praised information of prices, he also conceded that knowledge was dangerous. It
by Kenneth Rogoff · 27 Feb 2025 · 330pp · 127,791 words
1964, there was some real energy behind reform efforts to try to rationalize the system and to bring in some elements of markets and the price mechanism.11 Had such reforms been implemented, they might have given the Soviet Union some of the success that China’s more flexible implementation of socialism
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people could freely buy and sell without huge fees or taxes on the transaction. This, in turn, would have considerably facilitated trade expansion. With a price mechanism, members of the Soviet bloc could have used the ruble for trade, just as eurozone countries use the euro, without the complex machinations required to
by David Graeber · 3 Feb 2015 · 252pp · 80,636 words
aristocrat, whose 1944 book Bureaucracy argued that by definition, systems of government administration could never organize information with anything like the efficiency of impersonal market pricing mechanisms. However, extending the vote to the losers of the economic game would inevitably lead to calls for government intervention, framed as high-minded schemes for
by Steven Johnson · 5 Oct 2010 · 298pp · 81,200 words
Hayek launched his influential argument in the 1940s about the importance of price signals in market economies, he was observing a related phenomenon: the decentralized pricing mechanism of the marketplace allows an entrepreneur to gauge the relative value of his or her innovation. If you come up with an interesting new contraption
by Patrick J. Deneen · 9 Jan 2018 · 215pp · 61,435 words
separation of markets from social and religious contexts but people’s acceptance that their labor and its products were nothing more than commodities subject to price mechanisms, a transformative way of considering people and nature alike in newly utilitarian and individualistic terms. Yet market liberalism required treating both people and natural resources
by Daniel C. Dennett · 15 Jan 1995 · 846pp · 232,630 words
Archimedean point from which global progress could be measured. Is it progress when you have to work an extra job to pay for the high-priced mechanic you have to hire to fix your car when it breaks because it is too complex for you to fix in the way you used
by Steven Johnson · 329pp · 88,954 words
point would be at Level 3, because 1 plus 3 minus 1 equals 3. “He was far”: Jacobs, 2000, 154. A related idea is the pricing mechanism of market economies as an information-processing system, as described by the libertarian demigod Friedrich von Hayek. “Long before the fall of communism, Hayek identified
by Laurie Garrett · 31 Oct 1994 · 1,293pp · 357,735 words
: Multinational Drug Companies and the Third World (London: Spokesman Books, 1977); UNCTAD Secretariat, “Dominant Positions of Market Power of Transnational Corporations: Use of the Transfer Pricing Mechanism,” Geneva, November 30, 1977; J. M. Starrels, “The World Health Organization, Resisting Third World Ideological Pressures” (Washington, D.C.: Heritage Foundation, 1985); R. Deitch, “Commentary
by Don Tapscott and Alex Tapscott · 9 May 2016 · 515pp · 126,820 words
go because of a change in relative prices, but because he is ordered to do so.”25 In other words, markets allocate resources via the price mechanism, but firms allocate resources via authoritative direction. Williamson went on to explain that there are two significant coordinating systems. First is the price system for
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by Söderberg, Johan; Söderberg, Johan;
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