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We've discovered that central planning is inefficient, as it's hard for the planner to collect information about what is optimal for each person. Giving money distributes the decision-making to the people with the best capacity to make decisions on how to allocate resources.

The parallel in software is management buying terrible products on others' behalf. If you want good software, you ask the users to define requirements. Imagine telling the users, "We purchased SAP, because it checks all the boxes. You might prefer something else, but we know what's best for the company. You're welcome."




Equally important is a culture which very highly values the rights of people to make non-optimal decisions for themselves.


And the ability to compare results from different stochastic processes.




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