SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC.

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somehow or other to foresee plans and responses of the administra
tors of other sectors of the same economy. Any genuine economy
is too large and intricate to be globally planned and globally directed
from one center. I think in fact that it may be easier for a project
planner to predict the consequences of his plans in a competitive
context, such as is afforded by a mixed economy, than to do sc
where the sectors over which he has no control are other depart
ments of a centralized economy. The problems of economic coor
dination are always severe, collectivization does not obliterate or
solve these problems rather it places them candidly on the doorstep
of the planners and deprives them of the assistance of decentralized.
on-the-spot, decision makers.

MAHALANOBIS

On the last comment of Professor DORFMAN I should like to say
that in a centrally-planned economy you could approximate the
competitive equilibrium probably better than you can in a capitalistic
economy with many monopolies. In saying this, I am not expressing
 any political views. I just want to stress my first point about
the difficulty which you may face in a private or free economy
because it is really not competitive. I agree that if a private or
free economy is fully competitive then it has its advantages. I also
agree that there are some difficulties for a centrally-planned economy
to realize something which would be similar to a good state of competitive
 equilibrium. It is the question of imperfection of competi
tion which is of concern to me

DORFMAN

I think that we now understand each other fully The effectiveness
 of economic coordination in a mixed economy certainly does
depend on the extent of the distortions introduced by monopolies

Dorfman - pag. 23