Uncertainty calls for flexibility, but markets do not always provide the greatest flexibility in the face of uncertainty. All depends on the sources of the uncertainty. If what is uncertain is a multitude of facts about individual and separate markets, then decentralized pricing will appear attractive; if the uncertainty encompasses major events that will affect many parts of the organization in the same direction, then it may be advantageous to centralize the making of assumptions about the future and to require the decentralized units to use these assumptions in their decisions.
