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Showing posts with the label knowledge industry

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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Characterizing the Global City

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Three major urban trends are being observed was we head into the third decade of the present century. Antagonistic to most estimates, population growth rates slowed down for many cities in developing countries. The largest cities in the emerging countries experienced a slower rate of growth since 1980s relative to previous two decades. The world is now less dominated by very large cities than predicted earlier. Less than five per cent of the world's population lived in megacities in 1990. The prediction that cities such as Calcutta and Mexico City would evolve into gigantic metropolises of 30 to 40 million inhabitants, is unlikely to fructify. Linkages between urban change and economic, social, political and cultural change remain somewhat ambiguous. Some large and rapidly growing cities have been well-managed and serviced perhaps contrary to assertion that size exhibits diminishing returns with respect to city management. In fact, some of the worst physical conditions have
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Bangalore as Cyber Capital- People Respond to Incentives?

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By the late 1990s, the journey of Bangalore to be the Silicon Valley of India was truly under way. Many Information technology companies had set up their shops in Bangalore.   The origins of Bangalore being the Cyber capital lay in establishing the foundations of Electronics City and later the Information Technology Park (ITPL).   Electronics City was developed over 300 acres of land and provided initial impetus to firms setting up their units in electronic production and software.   In the process, it would be interesting to examine why Bangalore became the IT capital. The government went out of its way and facilitated the IT industry with a host of benefits. These included tax holidays, power at cheaper rates, land at cheaper rates etc. When the firm gets power, water and other utilities at lower than market price; it is able to produce at lower costs of production thus passing on the benefit of lower prices to the customers. Further, the presence of similar industries i
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