a planned economy would be impossible. His argument was that socialism must fail economically because of the economic calculation problem—the impossibility of a socialist government being able to make the economic calculations required to organize a complex economy. Mises projected that without a market economy there would be no functional price system which he held essential for achieving rational and efficient allocation of capital goods to their most productive uses. According to Mises, socialism would fail as demand cannot be known without prices. These arguments were elaborated by subsequent Austrian economists such as Hayek and students such as Hans Sennholz. In 1977, Hayek argued that "prices are an instrument of communication and guidance which embody more information than we directly have" and "the whole idea that you can bring about the same order based on the division of labor by simple direction falls to the ground. [...] [I]f you need prices, including the prices of labor, to direct people to go where they are needed, you cannot have another distribution except the one from the market principle". Hungarian economist János Kornai has written that "the attempt to realize market socialism [...] produces an incoherent system, in which there are elements that repel each other: the dominance of public ownership and the operation of the market are not compatible". Proponents of laissez-faire capitalism argue that although private monopolies do not have any actual competition, there are many potential competitors watching them and if they were delivering inadequate service, or charging an excessive amount for a good or service, investors would start a competing enterprise. The anarcho-capitalist economist Hans-Hermann Hoppe argues that in the absence of prices for the means of production, there is no cost-accounting which would direct labor and resources to the most valuable uses. According to Tibor Machan, "[w]ithout a market in which allocations can be made in obedience to the law of supply and demand, it is difficult or impossible to funnel resources with respect to actual human preferences and goals". According to economist Milton Friedman: "The loss part is just as important as the profit part. What distinguishes the private system from a government socialist system is the loss part. If an entrepreneur's project doesn't work, he closes it down. If it had been a government project, it would have been expanded, because there is not the discipline of the profit and loss element". Proponents of chaos