Posts

Showing posts with the label commons based peer production

Decision Making as Output and Bounded Rationality

  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra

Networked Information Economy and Social Production

A distinctive feature of the digital economy emergent in the last couple of decades or so has been the rise of networked computer mediated communication environment. This is in contrast to scale enabled industrial information economy that permeated the business backdrop for more than three and half centuries. A byproduct of new digital topography has been the movement of   non-market and non-proprietary   means of production and exchange to the core from the periphery. The industrial information ecosystem compelled production on a commercial scale. Given the factors of production and costs associated with them, it was relatively difficult if not impossible to build up alternative models of production based on non-proprietary and non-market models. However, a robust nonprofit sector did exist for centuries. What has however changed is the scale and scope of the operations of the same. The propositions of Alfred Chandler are being restructured and revisualised in the digital era.