Hayak wrote that the price setting nature of the market was a key efficiency. It may be theoretically possible for a bureaucrat to demand exactly the right number of shoes in the right sizes and styles for everyone, but getting it right would require foot information on millions of people, and usage information so that the proper number of shoes can be ordered.
By contrast, the market achieves that easily, with people deciding for themselves to buy, or not buy shoes. When shoes are not bought, the shoe salesman can offer the shoes at increasing discounts, eventually giving the worst shoes away to a charity for a tax deduction, and update his notions of what will sell. He learns from every sale that is made, and from every day that the shoes sit on his shelf not selling. Buyers lean from every shoe they try on, or wear out, and from every price tag posted. That is a lot of learning, that the limited market can not match.
That is a lot of learning, that the limited market can not match.
Ahhhhh! I wouldn't have thought of that as learning in 100 years. Once you see it, it's obvious, eh? Hah!
Thanks!