Why Central Planning Always Fails | The Aneesh Karve Series | Episode 4 (WiM265)
The "What is Money?" Show
The Cost of Obtaining Information
Soul quotes Walter E. Williams in this chapter, and I want to kind of come out with that quotation, because I think it'll help guide the conversation. People therefore seek to economize on information cost. In doing so, they tend to substitute less expensive forms of information for more expensive forms. If a particular physical attribute is perceived as correlated with a more costly to observe one, his liver might use that attribute as an estimator or proxy for the costly to observe attribute. That's really the key point of this chapter on sorting and unsorting people.
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