Centralised planning creates different economic results from market economies in the five ways:

#### Reaction time:
Central planners react immeasurably slower than free markets to changes that affect either side of supply or demand. When the Soviet Union raised the price paid for moleskins, there was a rapid spike in supply - many pelts rotted as a result. The planners were too busy setting 24 million other prices to lower the amount paid for these skins.

#### Waste:
Enterprises in a centrally planned economy recognise the asymmetric costs of underestimating demand than overestimating. Economists estimate that 5-15% of the works in most Soviet enterprises were surplus, kept around “just in case”. This asymmetry incentivises enterprises to ask for more than they need from the government. The alternative can be severe and sometimes mortal punishment. Under the Soviet Union, the energy required to produce one ton of cement was double that in Japan.

#### Error Correction:
A failing capitalist business can only fail for so long before the company must cease operation. Under a feudal or socialist economy such as the Soviet Union, mistakes can be hidden or ignored almost indefinitely. The businesses do not bear the costs of their mistakes. They are, instead, inflicted upon the population in the form of lower living-standards.

#### Incentives:
Centralised planning incentivises rational actors to do economic harm if the harms of the only alternative options are more salient. Under Stalin or Mao, the important relay of consequential negative news would not occur because the messenger risked their lives in conveying it.

#### Inadequacy of Supply:
In a free market, supply will fall short of demand only where production practically fails to produce enough product. Under the communist-Russian rule, food was in short supply despite many acres of unused fertile soil. Under capitalism, each individual makes choices for themselves. Under socialism, choices are made for them by a self-appointed elite which determines what is worth producing and what is not.