Economic Calculation Problem

First described by LudwigVonMises, the EconomicCalculationProblem originally dealt with the impossibility of central planning in a socialist economy. Because central planners have no prices on which to base decisions of what should be produced, socialist economies will not be able to supply their general populations with any consumer goods beyond primitive, needs-based items like food and basic shelter.

More recent work has shown that any monopolist ultimately will suffer from the EconomicCalculationProblem to some degree.

See http://www.mises.org/studystory.asp?control=10, but see http://www.infoshop.org/faq/secI1.html#seci11 for a counterpoint.