I want to draw out something Steve Waldman says in this interview (I’m really eluding a lot of interesting material here):
You can come up with very clever, fair schemes if you imagine people communicate only within your system. … I was entranced by the … story of how markets aggregate and communicate widely dispersed information….real markets differed … Real market institutions seem designed to hide information and shift consequences rather than reveal outcomes and allocate costs and rewards.
Markets do not work the way you think they do.
When those who suffer the delusion double down on the bet, as loyal followers of a philosophy are wont to do they sooner or later echo Margarert Thatcher: “… you know, there is no such thing as society…”.
Further I hadn’t quite internalized how this widespread delusion is synonymous with the open/closed world question in computer science, on many levels.