An agent-based approach to the limits of economic planning

Bibliographic Data

ID20396802
AuthorsEmanuele Martinelli (0000-0003-3306-7247, University of Zurich, corresponding author)
Year2025
Volume40
Issue5
Pages3391-3403
Publication date2025-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAI & Society (JOURNAL)
Journal identifiersISSN: 0951-5666 • E-ISSN: 1435-5655
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s00146-024-02078-9
OpenAlexW4402758901
LanguageEN
Citations received1
References cited41

Mises’ and Hayek’s arguments against central economic planning have long been taken as definitive proof that a centrally planned economy managed by the government would be impossible. Today, however, the exponential rise in the capacities of AI has opened up the possibility that supercomputers could have what it takes to plan the national economy. The ‘economic calculation debate’ has thus reignited. Arguably, this is because neither Mises nor Hayek have given a clear and conclusive argument why central planning of the economy is impossible in principle . The paper frames the problem of economic planning as an agent–environment interaction, offering a taxonomy of the different sets of agents at play a) in a market economy and b) in a centrally planned economy equipped with the most sophisticated AI technology. The argument is that public institutions as planning bodies cannot replace the market order, no matter the AI technology behind them, for the elimination of the market entails the elimination of crucial kinds of agents that cannot be recreated or emulated through AI or careful social planning: the proactive action of entrepreneurs driving market allocation

Art · Business · Management science · Performing arts · Process management · Computer Science · Economic theories and models · Economic Theory and Institutions · Engineering

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