I believe the usual answer would be that it wouldn't be possible since the very nature of the relevant knowledge makes it impossible to formalize and centralize. (Hayek)
Hi David, apologies for being off the radar for the past few days ... Hexágono answered your question more eloquently than I would have. Our cognitive and epistemic limits are deeper than AI can address. Phelan and Wenzel (JEBO 2023) have a good article laying out the argument that the knowledge problem is deeper: https://doi.org/10.1016/j.jebo.2022.10.018.
As David Deutsch points out, error correction is the basis of morality in a society. Without it you end up like North Korea.
Wonderful article, I loved it and learn a lot. Thanks!
Lynne— I am in agreement with you. But my question is: can future AI perform these functions and make central planning more feasible?
I believe the usual answer would be that it wouldn't be possible since the very nature of the relevant knowledge makes it impossible to formalize and centralize. (Hayek)
Hi David, apologies for being off the radar for the past few days ... Hexágono answered your question more eloquently than I would have. Our cognitive and epistemic limits are deeper than AI can address. Phelan and Wenzel (JEBO 2023) have a good article laying out the argument that the knowledge problem is deeper: https://doi.org/10.1016/j.jebo.2022.10.018.
With all this buildup, can you directly address electricity markets and the knowledge problem of ISOs/RTOs?