Political Science IV: Hacked Knowledge Problem

If I was the NSA, I would target the same thing – all the crypto keys. I do the same on pentests, so why not? One target, huge ROI.

Kevin Mitnick

Again, as a reminder, The Hayek Knowledge Problem has been hacked. “The Use of Knowledge in Society” has different implications in 2015 compared to 1945. Economic science, like all sciences, is not written in the staid stone of theological scripture. But live on it will–in the classical liberal turf wars…

3 thoughts on “Political Science IV: Hacked Knowledge Problem

  1. I’m not entirely sure what exactly you mean by “The Hayek Knowledge Problem has been hacked.” If it’s what I think it is, hacking the knowledge problem “from below” via crowdsourcing is what I had in mind with the pubwan concept. As far as you can tell, does the knowledge problem having been hacked from above imply that it will never be hacked from below? Just how decisive are the first-come-first-served effects here?

    • Simply, the knowledge problem pertains to the inability of the central planner to price supply/demand equilibrium because the knowledge to do so is contained in the prices themselves. The difficulty of the central planner to simulate the knowledge of prices revolves around the localized dispersion of participant knowledge and the general unwillingness of knowledgeable participants to divulge what they know.

      “Crowdsourcing” would be more of an example of the “spontaneous order” concept and not overcoming a “knowledge problem.”

      Hacked knowledge problem refers to a couple of things:

      (1) the ability to obtain information unwittingly from knowledgeable participants
      (2) piggy-backing off the data-analytic surveillance of large network setters like google,amazon eBay who are in the business of rewarding user preferences in exchange for their graphical surveillance
      (3) the central planner is more of a market setter, not a price setter

      cheers…

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