Sunstein on Hayek:

Cass Sunstein, guest-blogging for Lessig this week, has had a number of posts on Hayek (here and here). Most of the posts have actually been on why certain institutions, such as blogs, open-source software, Wikipedia, etc., are not actually Hayekian information-processing mechanisms. That is correct. There is a fundamental difference between a Hayekian information-processing mechanism, such as the price system, and the type of information-processing mechanism that Sunstein is exploring.

Oversimplified, the distinction is between those systems where the purpose is simply to centralize dispersed knowledge in one place versus systems that centralize knowledge for the purpose of decentralizing it again.

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