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Showing posts with the label digital externalities

Decision Making as Output and Bounded Rationality

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  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
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Studying the Knowledge Economy

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  On April 30, 1993, the WWW became open to public. So the era in the human society could very well be defined before the www era and the www era. The vision of Tim Berners Lee came to fruition on this day. He had visualized the interconnectivity among systems in the early 1980s which came to become the internet in 1989 at CERN. While the first website might have come around in 1991 or so, it was in 1993, the access was open to the public. It heralded into a revolution few could have imagined. As the world entered 1990s, it was believed computers would be here to stay but more of a standalone systems or at the most local area connected networks. The concept of wide area networks would again be a private or rather a club good. In the years following 1993, the expansion of the internet was beyond the expectations of its most ardent advocates. As information or even before it, the data began to pile up, it had become virtually difficult to search for something one needed in the internet.
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