Showing papers by "David Laibman published in 2011"
TL;DR: The possibility theorem as discussed by the authors suggests that when enterprise performance requires principled and knowledgeable participation of all of its members, reward maximization leads to convergence between plan and true potential, and between the plan and actual result.
Abstract: Libertarians, mainstream neoclassical economists, and even most socialists accept the idea that there are only two ways to organize economic activity: the market, and top-down command. A third alternative, however, is multi-level iterative coordination: enterprises create their own plans, and coordination occurs through repeated aggregation and fine-tuning. Enterprises must have incentives to plan ambitiously, but also realistically. The Western incentive design literature suggests that this is impossible: No incentive structure will prevent the enterprise from manipulating its plan and activity in ways that distort information and cause inefficiencies. However, when enterprise performance requires principled and knowledgeable participation of all of its members, reward maximization leads to convergence between plan and true potential, and between plan and actual result. This possibility theorem helps us to envision, and create, socialist institutions that combine the advantages of central coordination wi...
10 citations
Book•
22 Sep 2011
TL;DR: In this article, Okishio and his critics discuss the relationship between historical cost and replacement cost and present a theory of aggregate supply and demand based on the theory of value theory.
Abstract: Preface. Introduction 1. Value and Quest for the Core of Capitalism 2. Rhetoric and Substance in Value Theory: An Appraisal of the New Orthodox Marxism 3. Technical Change, Accumulation and the Rate of Profit Revisited 4. Okishio and His Critics: Historical Cost Vs Replacement Cost 5. Is There a Classical Theory of Supply and Demand? 6. Rationing and Price Control 7. Non-Constant Returns, Pareto Optimality and Competitive Equilibrium 8. Broadening the Theory of Aggregate Supply: A 'New Critical' Proposal 9. Revisioning Socialism: The Cherry Esplanade Conjecture 10. Incentive Design, Iterative Planning and Local Knowledge in a Maturing Socialist Economy
6 citations