Organizations usually do not exist because of the cost of using the price mechanism, but since they enable actions to be completed concurrently in conformity with a particular design. This concurrent co-ordination, which production demands, is different from the evolutionary coordination, which is the unintentional consequence of market transactions. The 2 processes are alternatives only to a limited extent. Evolutionary adjustment can’t result in concurrent coordination, and irreducible uncertainty restricts the scope of the planning which does…
Contents: Production, Planning and Prices
Introductory
Evolutionary versus Concurrent Coordination
The Process of Concurrent Coordination
The Process of Evolutionary Coordination
The Role of Prices
References
Source: Copenhagen Business School
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