>However, planning can be much closer to "perfect knowledge" than pure
>market, because it can take advantage of the economies of scale in reducing
>"transaction costs." (see Oliver Williamson, _markets and hierarchies_).
And don't forget what Coase, who originated the line of thinking that Williamson developed, said in his classic article "The Nature of the Firm": "If a workman moves from department Y to department X, he does not go because of a change in relative prices, but because he is ordered to do so." The legal text that Coase quoted from was Batt's The Law of Master and Servant. In other words, planning within the firm replaces (indirectly coercive) market relations with directly coercive relations. A problem for people who want to extrapolate from capitalist "planning" to post-capitalist planning.
Doug