CONFIGURING PRODUCTION “Entrepreneurs, through a process of trial and error, fig

CONFIGURING PRODUCTION

“Entrepreneurs, through a process of trial and error, figure out how best to configure production. In this process of ongoing discovery, there can be periods in which workers are unemployed, while the market mechanism tries to figure out how to utilize them.” — Arnold Kling.

I’ve been a supporter of Kling’s argument since he first started talking about it. But in our intellectual climate, an explanation must be reduced to some sort of model so that we are sure that the various causal axis are related in the way that we assume and intuit that they are.

As yet I haven’t seen such a model, or comparison with that model against data. This deconstruction, which involves painfully detailed research, was one of the many ideas that convinced greenspan of the virtue of the entrepreneurial coordination of production amidst fragmentary knowledge by studying the cotton trade.

I feel, that in my work, I am trying to express his argument for PSST in operational language of incentives using propertarian terminology.

(And I’m using PSST in a post that should come out later today.)

https://www.facebook.com/arnold.kling?