The Jim Rutt Show cover image

EP 182 Brad DeLong on An Economic History of the 20th Century

The Jim Rutt Show

00:00

The Knowledge Problem and the Incentivization Problem

Hayek: The calculation problem was published by Ludwig von Mises in the early 20s. He demonstrated that amount of calculation necessary to coordinate production distribution, consumption, savings and investment was just exponentially too large for any core or centralized organization. Hayek: There is a knowledge problem and an incentivization problem. And the problems of incentivizing people to accurately transmit knowledge are perhaps as great as the problem of collecting the knowledge somewhere where someone can calculate.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app