Economic calculation problem

The economic calculation problem (ECP) is a criticism of using central economic planning (rather than market-based mechanisms) for the allocation of the factors of production. It was first proposed by Ludwig von Mises in his 1920 article "Economic Calculation in the Socialist Commonwealth" and later expanded upon by Friedrich Hayek, who reframed the issue as a knowledge problem: the relevant information is dispersed, tacit, constantly changing, and thus cannot be centralized.

Source: Wikipedia — Economic calculation problem (CC BY-SA 4.0)