This paper is a response to Hodgson's recent critique of our model of participatory planning through negotiated co-ordination. His critique focused on four issues: the coherence of our distinction between market exchange and market forces; our understanding of tacit knowledge; the scope for innovation in our model; and the alleged problems of information overload and cognitive limitations. In this response we argue that Hodgson misinterprets our model as being based on the aggregation of individual preferences, whereas it is in fact a model of participatory planning through a process of deliberative democracy.