The Lange–Lerner model involves public ownership of the means of production and the utilization of a trial-and-error approach to achieving equilibrium prices by a central planning board. The Central Planning Board would be responsible for setting prices through a trial-and-error approach to establish equilibrium prices, effectively acting as the abstract Walrasian auctioneer in Walrasian economics. Managers of the state-owned firms would be instructed to set prices to equal marginal cost (P=MC), so that economic equilibrium and Pareto efficiency would be achieved.