That argument is basically Hayek's (and Mises's) answer to the economic calculation problem. Hayek argued (in "The Use of Knowledge in Society") that free markets are better than centralised planning, because of dispersed knowledge.

https://en.wikipedia.org/wiki/Friedrich_Hayek#The_economic_c...

https://en.wikipedia.org/wiki/The_Use_of_Knowledge_in_Societ...