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Showing posts with the label wikinomics

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

Externalities of Openness and Sharing

Noted authors Don Tapscott and Anthony Williams in their book Macrowikinomics describe current system as the driven through networks leading them to describe it economy resting on networked intelligence. To them, collaboration, openness, sharing, integrity and interdependence emerge key success determinants in the networked information economy.     The emergent network intelligence was itself a product of rapid diffusion of internet downstream at a pace that surprised even its most exuberant adherents. Rather than irrational exuberance, the diffusion of internet seems to be an outcome of rational exuberance. Long deprived of information access, analysis and distribution thanks to the constraint of brick and mortar economy, internet threw open the floodgates. The principles illustrated above without doubt have defined a new stream of thinking and practice. Dynamic environmental indicators have changed the way we perceive environmental impact of our socio-economic activity. Organ