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Comment by cgrand-net | Hacker News Reader

Perfect information and unlimited computing power.

I think this is a more important point that is always missed in free market debates. You need not only perfect information, but also unlimited computation power and skill to compute necessary information. If you can get a CSV file of global potato and onion producers with transportation cost, but you have no means of solving this TSP problem, you will not make an optimal decision.

In particular, relevant to this thread, if you have a magical CSV file created by an Oracle associating every food available in US with how "healthy" they are and how much calory they provide, in order to build a 2500 calory diet that maximizes health and minimizes cost, you need to solve a knapsack-like problem. In this environment market will necessarily be a little random not because we don't have enough information but because we don't have enough computational power.

This is generally the argument against command economies, in _favor_ of market economies. It's formally referred to as the Economic Calculation Problem.

I wasn't making a point against/in favor of free market nor was I suggesting this was a hidden factor I just unraveled. I just don't see this discussed in free market debates, here or in reddit but I think this is a very practical problem for some markets. I personally try to take as much rational decisions as possible and one of the limiting factors for me is knowing good enough algorithms to efficiently compute rational decisions. Of course, we don't have perfect information, so that's a problem too.

EDIT: I must also admit that I know absolutely nothing about economics. I'm a regular software engineer.

Don't forget infinite time.

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