Market Socialism is a system of socialist governance that utilizes a pricing system in order to aid the in the mechanic of central planning.
The origin of Market Socialism can be traced to the movement formed when centrally planned governments began to fail as a direct result of a lack of a pricing system. Market socialism was viewed a means of creating a socialist government, but using the market pricing component to identify the prices of goods, and therefore the necessary quantity to be produced and distributed in order to maximize efficiencies.
Laissez-faire economists argue that market socialism still creates inefficiencies in the market for the same reasons that government involvement in a traditional socialist government creates artifial prices. Despite the pricing mechanic in Market Socialism, the centrally planned nature leads to further problems with pricing (due to manipulations in pricing, such as subsidies). ---- Citations Needed ----
Socialist economists argue that examples of socialist economies that have failed are not accurate accounts of economic failures, and that socialism can still function without a pricing mechanic.
Austrian works that explain the market inefficiencies created by socialism include: Socialism: An Economic and Sociological Analysis by Ludwig von Mises.