New WORKING PAPER: “On the Takeover Mechanism in Market Socialism”, by Emilio Carnevali and Matteo Sommacal.
The paper investigates the reasons for the socialist movement’s historical distrust of the development of “well-defined” economic projects. This attitude seems to have changed, as a variety of blueprints for a socialist economy have been discussed in contemporary economic literature.
The article also addresses the market socialism scheme developed by economist Giacomo Corneo and proposes a different mathematical formulation of the mechanism through which the takeover of private industries by the public sector should be conducted. The mechanism developed in this paper can have multiple applications: it provides an elegant solution to the problem of extracting correct information from economic agents by the public authority. This problem affects socialist and capitalist economies alike.