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Weiye Loh

Roger Pielke Jr.'s Blog: Tall Tales in the New York Times - 0 views

rogerpielkejr.blogspot.com/...l-tales-in-new-york-times.html

Data News media bias Nature Disaster Insurance

shared by Weiye Loh on 14 Feb 11 - No Cached
  • , it is still amazing to see the newspaper of record publish a statement like the following about Munich Re, one of the world's largest reinsurance companies: Munich Re is already tailoring its offerings to a world of more extreme weather. It is a matter of financial survival: In 2008, heavy snows in China resulted in the collapse of 223,000 homes, according to Chinese government statistics, including $1 billion in insured lossesMunich Re's financial survival? Here Rosenthal makes a leap well beyond the perhaps understandable following along with the delusions of crowds. There are always risks to bringing data to bear on an enjoyable tale tall, but let's look anyway at what is actually going on in Munich Re's business over the past several years.
  • Here is what Muinch Re reported on its 2008 company performance, the year in which China suffered the heavy snows: Notwithstanding the most severe financial crisis for generations, Munich Re recorded a clear profit for the financial year 2008, in line with previous announcements. According to preliminary calculations, the consolidated profit amounted to €1.5bn.How about 2009 then? Nikolaus von Bomhard, Chairman of the Board of Management: “We have brought the financial year 2009 to a successful close: with a profit of over €2.5bn, we were even able to surpass expectations and achieve our long-term return target despite the difficult environment.” Sure, 2010 must have see some evidence of a threat to the company's financial survival?  Guess again: On the basis of preliminary estimates, Munich Re achieved a consolidated result of €2.43bn for 2010 (previous year: €2.56bn), despite substantial major losses. The profit for the fourth quarter totalled €0.48bn (0.78bn). Shareholders are to participate in last year's success through another increase in the dividend: subject to approval by the Supervisory Board and the Annual General Meeting, the dividend will rise by 50 cents to €6.25 (5.75) per share. In addition, Munich Re has announced a further share buy-back programme: shares with a volume of up to €500m are to be repurchased before the Annual General Meeting in 2012
  • The NYT may be unaware of the fact that not only is Munich Re in the catastrophe reinsurance business, meaning that it pays out variable and large claims for disasters, but that its business actually depends upon those disasters
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  • Munich Re explains in the context of recent disasters (emphasis added): Overall, pressure on prices in most lines of business and regions is persisting. Munich Re therefore consistently withdrew from under-rated business. It nevertheless proved possible to expand accounts with individual major clients, so that the business volume grew slightly on balance, despite the difficult environment. Munich Re owes this profitable growth especially to its ability to swiftly offer complex, tailor-made reinsurance solutions to its clients. Besides this, the many large losses resulting from natural hazards and also from man-made events, had a stabilising influence on the lines of business and regions affected. Thus, prices increased markedly for natural catastrophe covers in Australia/New Zealand (Oceania) and in offshore energy business. There were no major changes in conditions in this renewal season. The overall outcome of the reinsurance treaty renewals at 1 January 2011 was again very satisfactory for Munich Re.
  • There is downward pressure on prices in the reinsurance industry because there have not been enough disasters to keep up demand and thus premium prices. The following observation was made just three months ago: Insurance and reinsurance prices have been falling across most business lines for two years, reflecting intense competition between well-capitalised insurers and a comparative dearth of major catastrophe-induced losses.
  • as Munch Re explains, they have been able to overcome the dearth of disasters because recent extreme events have allowed them to increase prices on coverage in a manner that not only counteracts recent losses to some degree, but even allows for "profitable growth."  As with most tall tales, the one about the financial plight of reinsurers dealing with a changed climate isn't going away any time soon. It is just another bit of  popular unreality that effective decision making will have to overcome.
Weiye Loh

The Inequality That Matters - Tyler Cowen - The American Interest Magazine - 0 views

www.the-american-interest.com/article-bd.cfm

Income Inequality Social Divide Economy

shared by Weiye Loh on 16 Dec 10 - No Cached
  • most of the worries about income inequality are bogus, but some are probably better grounded and even more serious than even many of their heralds realize.
  • In terms of immediate political stability, there is less to the income inequality issue than meets the eye. Most analyses of income inequality neglect two major points. First, the inequality of personal well-being is sharply down over the past hundred years and perhaps over the past twenty years as well. Bill Gates is much, much richer than I am, yet it is not obvious that he is much happier if, indeed, he is happier at all. I have access to penicillin, air travel, good cheap food, the Internet and virtually all of the technical innovations that Gates does. Like the vast majority of Americans, I have access to some important new pharmaceuticals, such as statins to protect against heart disease. To be sure, Gates receives the very best care from the world’s top doctors, but our health outcomes are in the same ballpark. I don’t have a private jet or take luxury vacations, and—I think it is fair to say—my house is much smaller than his. I can’t meet with the world’s elite on demand. Still, by broad historical standards, what I share with Bill Gates is far more significant than what I don’t share with him.
  • when average people read about or see income inequality, they don’t feel the moral outrage that radiates from the more passionate egalitarian quarters of society. Instead, they think their lives are pretty good and that they either earned through hard work or lucked into a healthy share of the American dream.
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  • This is why, for example, large numbers of Americans oppose the idea of an estate tax even though the current form of the tax, slated to return in 2011, is very unlikely to affect them or their estates. In narrowly self-interested terms, that view may be irrational, but most Americans are unwilling to frame national issues in terms of rich versus poor. There’s a great deal of hostility toward various government bailouts, but the idea of “undeserving” recipients is the key factor in those feelings. Resentment against Wall Street gamesters hasn’t spilled over much into resentment against the wealthy more generally. The bailout for General Motors’ labor unions wasn’t so popular either—again, obviously not because of any bias against the wealthy but because a basic sense of fairness was violated. As of November 2010, congressional Democrats are of a mixed mind as to whether the Bush tax cuts should expire for those whose annual income exceeds $250,000; that is in large part because their constituents bear no animus toward rich people, only toward undeservedly rich people.
  • envy is usually local. At least in the United States, most economic resentment is not directed toward billionaires or high-roller financiers—not even corrupt ones. It’s directed at the guy down the hall who got a bigger raise. It’s directed at the husband of your wife’s sister, because the brand of beer he stocks costs $3 a case more than yours, and so on. That’s another reason why a lot of people aren’t so bothered by income or wealth inequality at the macro level. Most of us don’t compare ourselves to billionaires. Gore Vidal put it honestly: “Whenever a friend succeeds, a little something in me dies.”
  • Occasionally the cynic in me wonders why so many relatively well-off intellectuals lead the egalitarian charge against the privileges of the wealthy. One group has the status currency of money and the other has the status currency of intellect, so might they be competing for overall social regard? The high status of the wealthy in America, or for that matter the high status of celebrities, seems to bother our intellectual class most. That class composes a very small group, however, so the upshot is that growing income inequality won’t necessarily have major political implications at the macro level.
  • All that said, income inequality does matter—for both politics and the economy.
  • The numbers are clear: Income inequality has been rising in the United States, especially at the very top. The data show a big difference between two quite separate issues, namely income growth at the very top of the distribution and greater inequality throughout the distribution. The first trend is much more pronounced than the second, although the two are often confused.
  • When it comes to the first trend, the share of pre-tax income earned by the richest 1 percent of earners has increased from about 8 percent in 1974 to more than 18 percent in 2007. Furthermore, the richest 0.01 percent (the 15,000 or so richest families) had a share of less than 1 percent in 1974 but more than 6 percent of national income in 2007. As noted, those figures are from pre-tax income, so don’t look to the George W. Bush tax cuts to explain the pattern. Furthermore, these gains have been sustained and have evolved over many years, rather than coming in one or two small bursts between 1974 and today.1
  • At the same time, wage growth for the median earner has slowed since 1973. But that slower wage growth has afflicted large numbers of Americans, and it is conceptually distinct from the higher relative share of top income earners. For instance, if you take the 1979–2005 period, the average incomes of the bottom fifth of households increased only 6 percent while the incomes of the middle quintile rose by 21 percent. That’s a widening of the spread of incomes, but it’s not so drastic compared to the explosive gains at the very top.
  • The broader change in income distribution, the one occurring beneath the very top earners, can be deconstructed in a manner that makes nearly all of it look harmless. For instance, there is usually greater inequality of income among both older people and the more highly educated, if only because there is more time and more room for fortunes to vary. Since America is becoming both older and more highly educated, our measured income inequality will increase pretty much by demographic fiat. Economist Thomas Lemieux at the University of British Columbia estimates that these demographic effects explain three-quarters of the observed rise in income inequality for men, and even more for women.2
  • Attacking the problem from a different angle, other economists are challenging whether there is much growth in inequality at all below the super-rich. For instance, real incomes are measured using a common price index, yet poorer people are more likely to shop at discount outlets like Wal-Mart, which have seen big price drops over the past twenty years.3 Once we take this behavior into account, it is unclear whether the real income gaps between the poor and middle class have been widening much at all. Robert J. Gordon, an economist from Northwestern University who is hardly known as a right-wing apologist, wrote in a recent paper that “there was no increase of inequality after 1993 in the bottom 99 percent of the population”, and that whatever overall change there was “can be entirely explained by the behavior of income in the top 1 percent.”4
  • And so we come again to the gains of the top earners, clearly the big story told by the data. It’s worth noting that over this same period of time, inequality of work hours increased too. The top earners worked a lot more and most other Americans worked somewhat less. That’s another reason why high earners don’t occasion more resentment: Many people understand how hard they have to work to get there. It also seems that most of the income gains of the top earners were related to performance pay—bonuses, in other words—and not wildly out-of-whack yearly salaries.5
  • It is also the case that any society with a lot of “threshold earners” is likely to experience growing income inequality. A threshold earner is someone who seeks to earn a certain amount of money and no more. If wages go up, that person will respond by seeking less work or by working less hard or less often. That person simply wants to “get by” in terms of absolute earning power in order to experience other gains in the form of leisure—whether spending time with friends and family, walking in the woods and so on. Luck aside, that person’s income will never rise much above the threshold.
  • The funny thing is this: For years, many cultural critics in and of the United States have been telling us that Americans should behave more like threshold earners. We should be less harried, more interested in nurturing friendships, and more interested in the non-commercial sphere of life. That may well be good advice. Many studies suggest that above a certain level more money brings only marginal increments of happiness. What isn’t so widely advertised is that those same critics have basically been telling us, without realizing it, that we should be acting in such a manner as to increase measured income inequality. Not only is high inequality an inevitable concomitant of human diversity, but growing income inequality may be, too, if lots of us take the kind of advice that will make us happier.
  • Why is the top 1 percent doing so well?
  • Steven N. Kaplan and Joshua Rauh have recently provided a detailed estimation of particular American incomes.6 Their data do not comprise the entire U.S. population, but from partial financial records they find a very strong role for the financial sector in driving the trend toward income concentration at the top. For instance, for 2004, nonfinancial executives of publicly traded companies accounted for less than 6 percent of the top 0.01 percent income bracket. In that same year, the top 25 hedge fund managers combined appear to have earned more than all of the CEOs from the entire S&P 500. The number of Wall Street investors earning more than $100 million a year was nine times higher than the public company executives earning that amount. The authors also relate that they shared their estimates with a former U.S. Secretary of the Treasury, one who also has a Wall Street background. He thought their estimates of earnings in the financial sector were, if anything, understated.
  • Many of the other high earners are also connected to finance. After Wall Street, Kaplan and Rauh identify the legal sector as a contributor to the growing spread in earnings at the top. Yet many high-earning lawyers are doing financial deals, so a lot of the income generated through legal activity is rooted in finance. Other lawyers are defending corporations against lawsuits, filing lawsuits or helping corporations deal with complex regulations. The returns to these activities are an artifact of the growing complexity of the law and government growth rather than a tale of markets per se. Finance aside, there isn’t much of a story of market failure here, even if we don’t find the results aesthetically appealing.
  • When it comes to professional athletes and celebrities, there isn’t much of a mystery as to what has happened. Tiger Woods earns much more, even adjusting for inflation, than Arnold Palmer ever did. J.K. Rowling, the first billionaire author, earns much more than did Charles Dickens. These high incomes come, on balance, from the greater reach of modern communications and marketing. Kids all over the world read about Harry Potter. There is more purchasing power to spend on children’s books and, indeed, on culture and celebrities more generally. For high-earning celebrities, hardly anyone finds these earnings so morally objectionable as to suggest that they be politically actionable. Cultural critics can complain that good schoolteachers earn too little, and they may be right, but that does not make celebrities into political targets. They’re too popular. It’s also pretty clear that most of them work hard to earn their money, by persuading fans to buy or otherwise support their product. Most of these individuals do not come from elite or extremely privileged backgrounds, either. They worked their way to the top, and even if Rowling is not an author for the ages, her books tapped into the spirit of their time in a special way. We may or may not wish to tax the wealthy, including wealthy celebrities, at higher rates, but there is no need to “cure” the structural causes of higher celebrity incomes.
  • to be sure, the high incomes in finance should give us all pause.
  • The first factor driving high returns is sometimes called by practitioners “going short on volatility.” Sometimes it is called “negative skewness.” In plain English, this means that some investors opt for a strategy of betting against big, unexpected moves in market prices. Most of the time investors will do well by this strategy, since big, unexpected moves are outliers by definition. Traders will earn above-average returns in good times. In bad times they won’t suffer fully when catastrophic returns come in, as sooner or later is bound to happen, because the downside of these bets is partly socialized onto the Treasury, the Federal Reserve and, of course, the taxpayers and the unemployed.
  • if you bet against unlikely events, most of the time you will look smart and have the money to validate the appearance. Periodically, however, you will look very bad. Does that kind of pattern sound familiar? It happens in finance, too. Betting against a big decline in home prices is analogous to betting against the Wizards. Every now and then such a bet will blow up in your face, though in most years that trading activity will generate above-average profits and big bonuses for the traders and CEOs.
  • To this mix we can add the fact that many money managers are investing other people’s money. If you plan to stay with an investment bank for ten years or less, most of the people playing this investing strategy will make out very well most of the time. Everyone’s time horizon is a bit limited and you will bring in some nice years of extra returns and reap nice bonuses. And let’s say the whole thing does blow up in your face? What’s the worst that can happen? Your bosses fire you, but you will still have millions in the bank and that MBA from Harvard or Wharton. For the people actually investing the money, there’s barely any downside risk other than having to quit the party early. Furthermore, if everyone else made more or less the same mistake (very surprising major events, such as a busted housing market, affect virtually everybody), you’re hardly disgraced. You might even get rehired at another investment bank, or maybe a hedge fund, within months or even weeks.
  • Moreover, smart shareholders will acquiesce to or even encourage these gambles. They gain on the upside, while the downside, past the point of bankruptcy, is borne by the firm’s creditors. And will the bondholders object? Well, they might have a difficult time monitoring the internal trading operations of financial institutions. Of course, the firm’s trading book cannot be open to competitors, and that means it cannot be open to bondholders (or even most shareholders) either. So what, exactly, will they have in hand to object to?
  • Perhaps more important, government bailouts minimize the damage to creditors on the downside. Neither the Treasury nor the Fed allowed creditors to take any losses from the collapse of the major banks during the financial crisis. The U.S. government guaranteed these loans, either explicitly or implicitly. Guaranteeing the debt also encourages equity holders to take more risk. While current bailouts have not in general maintained equity values, and while share prices have often fallen to near zero following the bust of a major bank, the bailouts still give the bank a lifeline. Instead of the bank being destroyed, sometimes those equity prices do climb back out of the hole. This is true of the major surviving banks in the United States, and even AIG is paying back its bailout. For better or worse, we’re handing out free options on recovery, and that encourages banks to take more risk in the first place.
  • there is an unholy dynamic of short-term trading and investing, backed up by bailouts and risk reduction from the government and the Federal Reserve. This is not good. “Going short on volatility” is a dangerous strategy from a social point of view. For one thing, in so-called normal times, the finance sector attracts a big chunk of the smartest, most hard-working and most talented individuals. That represents a huge human capital opportunity cost to society and the economy at large. But more immediate and more important, it means that banks take far too many risks and go way out on a limb, often in correlated fashion. When their bets turn sour, as they did in 2007–09, everyone else pays the price.
  • And it’s not just the taxpayer cost of the bailout that stings. The financial disruption ends up throwing a lot of people out of work down the economic food chain, often for long periods. Furthermore, the Federal Reserve System has recapitalized major U.S. banks by paying interest on bank reserves and by keeping an unusually high interest rate spread, which allows banks to borrow short from Treasury at near-zero rates and invest in other higher-yielding assets and earn back lots of money rather quickly. In essence, we’re allowing banks to earn their way back by arbitraging interest rate spreads against the U.S. government. This is rarely called a bailout and it doesn’t count as a normal budget item, but it is a bailout nonetheless. This type of implicit bailout brings high social costs by slowing down economic recovery (the interest rate spreads require tight monetary policy) and by redistributing income from the Treasury to the major banks.
  • the “going short on volatility” strategy increases income inequality. In normal years the financial sector is flush with cash and high earnings. In implosion years a lot of the losses are borne by other sectors of society. In other words, financial crisis begets income inequality. Despite being conceptually distinct phenomena, the political economy of income inequality is, in part, the political economy of finance. Simon Johnson tabulates the numbers nicely: From 1973 to 1985, the financial sector never earned more than 16 percent of domestic corporate profits. In 1986, that figure reached 19 percent. In the 1990s, it oscillated between 21 percent and 30 percent, higher than it had ever been in the postwar period. This decade, it reached 41 percent. Pay rose just as dramatically. From 1948 to 1982, average compensation in the financial sector ranged between 99 percent and 108 percent of the average for all domestic private industries. From 1983, it shot upward, reaching 181 percent in 2007.7
  • There’s a second reason why the financial sector abets income inequality: the “moving first” issue. Let’s say that some news hits the market and that traders interpret this news at different speeds. One trader figures out what the news means in a second, while the other traders require five seconds. Still other traders require an entire day or maybe even a month to figure things out. The early traders earn the extra money. They buy the proper assets early, at the lower prices, and reap most of the gains when the other, later traders pile on. Similarly, if you buy into a successful tech company in the early stages, you are “moving first” in a very effective manner, and you will capture most of the gains if that company hits it big.
  • The moving-first phenomenon sums to a “winner-take-all” market. Only some relatively small number of traders, sometimes just one trader, can be first. Those who are first will make far more than those who are fourth or fifth. This difference will persist, even if those who are fourth come pretty close to competing with those who are first. In this context, first is first and it doesn’t matter much whether those who come in fourth pile on a month, a minute or a fraction of a second later. Those who bought (or sold, as the case may be) first have captured and locked in most of the available gains. Since gains are concentrated among the early winners, and the closeness of the runner-ups doesn’t so much matter for income distribution, asset-market trading thus encourages the ongoing concentration of wealth. Many investors make lots of mistakes and lose their money, but each year brings a new bunch of projects that can turn the early investors and traders into very wealthy individuals.
  • These two features of the problem—“going short on volatility” and “getting there first”—are related. Let’s say that Goldman Sachs regularly secures a lot of the best and quickest trades, whether because of its quality analysis, inside connections or high-frequency trading apparatus (it has all three). It builds up a treasure chest of profits and continues to hire very sharp traders and to receive valuable information. Those profits allow it to make “short on volatility” bets faster than anyone else, because if it messes up, it still has a large enough buffer to pad losses. This increases the odds that Goldman will repeatedly pull in spectacular profits.
  • Still, every now and then Goldman will go bust, or would go bust if not for government bailouts. But the odds are in any given year that it won’t because of the advantages it and other big banks have. It’s as if the major banks have tapped a hole in the social till and they are drinking from it with a straw. In any given year, this practice may seem tolerable—didn’t the bank earn the money fair and square by a series of fairly normal looking trades? Yet over time this situation will corrode productivity, because what the banks do bears almost no resemblance to a process of getting capital into the hands of those who can make most efficient use of it. And it leads to periodic financial explosions. That, in short, is the real problem of income inequality we face today. It’s what causes the inequality at the very top of the earning pyramid that has dangerous implications for the economy as a whole.
  • What about controlling bank risk-taking directly with tight government oversight? That is not practical. There are more ways for banks to take risks than even knowledgeable regulators can possibly control; it just isn’t that easy to oversee a balance sheet with hundreds of billions of dollars on it, especially when short-term positions are wound down before quarterly inspections. It’s also not clear how well regulators can identify risky assets. Some of the worst excesses of the financial crisis were grounded in mortgage-backed assets—a very traditional function of banks—not exotic derivatives trading strategies. Virtually any asset position can be used to bet long odds, one way or another. It is naive to think that underpaid, undertrained regulators can keep up with financial traders, especially when the latter stand to earn billions by circumventing the intent of regulations while remaining within the letter of the law.
  • For the time being, we need to accept the possibility that the financial sector has learned how to game the American (and UK-based) system of state capitalism. It’s no longer obvious that the system is stable at a macro level, and extreme income inequality at the top has been one result of that imbalance. Income inequality is a symptom, however, rather than a cause of the real problem. The root cause of income inequality, viewed in the most general terms, is extreme human ingenuity, albeit of a perverse kind. That is why it is so hard to control.
  • Another root cause of growing inequality is that the modern world, by so limiting our downside risk, makes extreme risk-taking all too comfortable and easy. More risk-taking will mean more inequality, sooner or later, because winners always emerge from risk-taking. Yet bankers who take bad risks (provided those risks are legal) simply do not end up with bad outcomes in any absolute sense. They still have millions in the bank, lots of human capital and plenty of social status. We’re not going to bring back torture, trial by ordeal or debtors’ prisons, nor should we. Yet the threat of impoverishment and disgrace no longer looms the way it once did, so we no longer can constrain excess financial risk-taking. It’s too soft and cushy a world.
  • Why don’t we simply eliminate the safety net for clueless or unlucky risk-takers so that losses equal gains overall? That’s a good idea in principle, but it is hard to put into practice. Once a financial crisis arrives, politicians will seek to limit the damage, and that means they will bail out major financial institutions. Had we not passed TARP and related policies, the United States probably would have faced unemployment rates of 25 percent of higher, as in the Great Depression. The political consequences would not have been pretty. Bank bailouts may sound quite interventionist, and indeed they are, but in relative terms they probably were the most libertarian policy we had on tap. It meant big one-time expenses, but, for the most part, it kept government out of the real economy (the General Motors bailout aside).
  • We probably don’t have any solution to the hazards created by our financial sector, not because plutocrats are preventing our political system from adopting appropriate remedies, but because we don’t know what those remedies are. Yet neither is another crisis immediately upon us. The underlying dynamic favors excess risk-taking, but banks at the current moment fear the scrutiny of regulators and the public and so are playing it fairly safe. They are sitting on money rather than lending it out. The biggest risk today is how few parties will take risks, and, in part, the caution of banks is driving our current protracted economic slowdown. According to this view, the long run will bring another financial crisis once moods pick up and external scrutiny weakens, but that day of reckoning is still some ways off.
  • Is the overall picture a shame? Yes. Is it distorting resource distribution and productivity in the meantime? Yes. Will it again bring our economy to its knees? Probably. Maybe that’s simply the price of modern society. Income inequality will likely continue to rise and we will search in vain for the appropriate political remedies for our underlying problems.
Weiye Loh

The Avengers: Why Pirates Failed To Prevent A Box Office Record | TorrentFreak - 0 views

torrentfreak.com/ent-a-box-office-record-120508

Piracy Movie Profits

shared by Weiye Loh on 27 May 12 - No Cached
  • Of all the people who downloaded a pirate copy of the film about 20% came from the US. This means that roughly 100,000 Americans have downloaded a copy online through BitTorrent. Now, IF all these people bought a movie ticket instead then box office revenue would be just 0.5% higher. Not much of an impact, and even less when you consider that these “pirates” do not all count as a lost sale.
  • We don’t think that there are many movie fans who see a low quality camcorded version of a movie as a true alternative to watching a film in a movie theater. The two are totally different experiences, and not direct competition at all.
  • downloading a camcorded movie could be compared to downloading a low quality bootleg of a concert. People who download these are collectors, passionate fans, or just curious. But in no way do these bootlegs seriously hurt concert attendances.
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  • A recent study showed that the US box office is not suffering from movie piracy, but that there is a detrimental effect on international box office figures. The researchers attribute this impact to the wide release gaps, which sometimes result in a high quality DVD copy being available on pirate sites while a movie is still showing in theaters. These high quality copies are more likely to “compete” with movie theater attendance and if a movie is not showing in local theaters at all, it definitely has the potential to impact future attendance. This is even more true for the DVD-aftermarket and VOD sales. High quality pirated copies are direct competition and can impact revenues.
  • Weiye Loh on 27 May 12
     
    Despite the widespread availability of pirated releases, The Avengers just scored a record-breaking $200 million opening weekend at the box office. While some are baffled to see that piracy failed to crush the movie's profits, it's really not that surprising. Claiming a camcorded copy of a movie seriously impacts box office attendance is the same as arguing that concert bootlegs stop people from seeing artists on stage.
Weiye Loh

What If The Very Theory That Underlies Why We Need Patents Is Wrong? | Techdirt - 0 views

www.techdirt.com/...0517167656.shtml

Patent Law Innovation

shared by Weiye Loh on 22 Apr 10 - Cached
  • Scott Walker points us to a fascinating paper by Carliss Y. Baldwin and Eric von Hippel, suggesting that some of the most basic theories on which the patent system is based are wrong, and because of that, the patent system might hinder innovation.
  • numerous other research papers and case studies that suggest that the patent system quite frequently hinders innovation, but this one approaches it from a different angle than ones we've seen before, and is actually quite convincing. It looks at the putative putative theory that innovation comes from a direct profit motive of a single corporation looking to sell the good in market, and for that to work, the company needs to take the initial invention and get temporary monopoly protection to keep out competitors in order to recoup the cost of research and development.
  • the paper goes through a whole bunch of studies suggesting that quite frequently innovation happens through a very different process: either individuals or companies directly trying to solve a problem they themselves have (i.e., the initial motive is not to profit directly from sales, but to help them in something they were doing) or through a much more collaborative process, whereby multiple parties all contribute to the process of innovation, somewhat openly, recognizing that as each contributes some, everyone benefits. As the report notes: This result hinges on the fact that the innovative design itself is a non-rival good: each participant in a collaborative effort gets the value of the whole design, but incurs only a fraction of the design cost.
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  • patents are designed to make that sort of thing more difficult, because it assumes that the initial act of invention is the key point, rather than all the incremental innovations built on top of it that all parties can benefit from.
  • the report points to numerous studies that show, when given the chance, many companies freely share their ideas with others, recognizing the direct benefit they get.
  • Even more importantly, the paper finds that due to technological advances and the ability to more rapidly and easily communicate and collaborate widely, these forms of innovation (innovation for direct use as well as collaborative innovation) are becoming more and more viable across a variety of industries, which in the past may have relied more on the old way of innovating (single company innovative for the profit of selling that product).
  • because of the ease of communication and collaboration these days, there's tremendous incentive for those companies that innovate for their own use to collaborate with others, since the benefit from others improving as well help improve their own uses. Thus, the overall incentives are to move much more to a collaborative form of innovation in the market. That has huge implications for a patent system designed to help the "old model" of innovation (producer inventing for the market) and not the increasingly regular one (collaborative innovation for usage).
  • no one is saying that producer-based innovation (company inventing to sell on the market) doesn't occur or won't continue to occur. But it is an open policy question as to whether or not our innovation policies should favor that model over other models -- when evidence suggests that a significant amount of innovation occurs in these other ways -- and that amount is growing rapidly.
  • Weiye Loh on 22 Apr 10
     
    What If The Very Theory That Underlies Why We Need Patents Is Wrong? from the collaborative-innovation-at-work dept
Weiye Loh

When Insurers Put Profits Before People - NYTimes.com - 0 views

www.nytimes.com/...06chen.html

Insurance Health Health Care Public Public Relations

shared by Weiye Loh on 07 Jan 11 - No Cached
  • Late in 2007
  • A 17-year-old girl named Nataline Sarkisyan was in desperate need of a transplant after receiving aggressive treatment that cured her recurrent leukemia but caused her liver to fail. Without a new organ, she would die in a matter of a days; with one, she had a 65 percent chance of surviving. Her doctors placed her on the liver transplant waiting list.
  • She was critically ill, as close to death as one could possibly be while technically still alive, and her fate was inextricably linked to another’s. Somewhere, someone with a compatible organ had to die in time for Nataline to live.
  • ...9 more annotations...
  • But even when the perfect liver became available a few days after she was put on the list, doctors could not operate. What made Nataline different from most transplant patients, and what eventually brought her case to the attention of much of the country, was that her survival did not depend on the availability of an organ or her clinicians or even the quality of care she received. It rested on her health insurance company.
  • Cigna had denied the initial request to cover the costs of the liver transplant. And the insurer persisted in its refusal, claiming that the treatment was “experimental” and unproven, and despite numerous pleas from Nataline’s physicians to the contrary.
  • But as relatives and friends organized campaigns to draw public attention to Nataline’s plight, the insurance conglomerate found itself embroiled in a public relations nightmare, one that could jeopardize its very existence. The company reversed its decision. But the change came too late. Nataline died just a few hours after Cigna authorized the transplant.
  • Mr. Potter was the head of corporate communications at two major insurers, first at Humana and then at Cigna. Now Mr. Potter has written a fascinating book that details the methods he and his colleagues used to manipulate public opinion
  • Mr. Potter goes on to describe the myth-making he did, interspersing descriptions of front groups, paid spies and jiggered studies with a deft retelling of the convoluted (and usually eye-glazing) history of health care insurance policies.
  • We learn that executives at Cigna worried that Nataline’s situation would only add fire to the growing public discontent with a health care system anchored by private insurance. As the case drew more national attention, the threat of a legislative overhaul that would ban for-profit insurers became real, and Mr. Potter found himself working on the biggest P.R. campaign of his career.
  • Cigna hired a large international law firm and a P.R. firm already well known to them from previous work aimed at discrediting Michael Moore and his film “Sicko.” Together with Cigna, these outside firms waged a campaign that would eventually include the aggressive placement of articles with friendly “third party” reporters, editors and producers who would “disabuse the media, politicians and the public of the notion that Nataline would have gotten the transplant if she had lived in Canada or France or England or any other developed country.” A “spy” was dispatched to Nataline’s funeral; and when the Sarkisyan family filed a lawsuit against the insurer, a team of lawyers was assigned to keep track of actions and comments by the family’s lawyer.
  • In the end, however, Nataline’s death proved to be the final straw for Mr. Potter. “It became clearer to me than ever that I was part of an industry that would do whatever it took to perpetuate its extraordinarily profitable existence,” he writes. “I had sold my soul.” He left corporate public relations for good less than six months after her death.
  • “I don’t mean to imply that all people who work for health insurance companies are greedier or more evil than other Americans,” he writes. “In fact, many of them feel — and justifiably so — that they are helping millions of people get they care they need.” The real problem, he says, lies in the fact that the United States “has entrusted one of the most important societal functions, providing health care, to private health insurance companies.” Therefore, the top executives of these companies become beholden not to the patients they have pledged to cover, but to the shareholders who hold them responsible for the bottom line.
Weiye Loh

Hacktivists as Gadflies - NYTimes.com - 0 views

opinionator.blogs.nytimes.com/...hacktivists-as-gadflies

Hacking hacktivism Law Technology Censorship

shared by Weiye Loh on 14 Apr 13 - No Cached
  • Weiye Loh on 14 Apr 13
     
    "Consider the case of Andrew Auernheimer, better known as "Weev." When Weev discovered in 2010 that AT&T had left private information about its customers vulnerable on the Internet, he and a colleague wrote a script to access it. Technically, he did not "hack" anything; he merely executed a simple version of what Google Web crawlers do every second of every day - sequentially walk through public URLs and extract the content. When he got the information (the e-mail addresses of 114,000 iPad users, including Mayor Michael Bloomberg and Rahm Emanuel, then the White House chief of staff), Weev did not try to profit from it; he notified the blog Gawker of the security hole. For this service Weev might have asked for free dinners for life, but instead he was recently sentenced to 41 months in prison and ordered to pay a fine of more than $73,000 in damages to AT&T to cover the cost of notifying its customers of its own security failure. When the federal judge Susan Wigenton sentenced Weev on March 18, she described him with prose that could have been lifted from the prosecutor Meletus in Plato's "Apology." "You consider yourself a hero of sorts," she said, and noted that Weev's "special skills" in computer coding called for a more draconian sentence. I was reminded of a line from an essay written in 1986 by a hacker called the Mentor: "My crime is that of outsmarting you, something that you will never forgive me for." When offered the chance to speak, Weev, like Socrates, did not back down: "I don't come here today to ask for forgiveness. I'm here to tell this court, if it has any foresight at all, that it should be thinking about what it can do to make amends to me for the harm and the violence that has been inflicted upon my life." He then went on to heap scorn upon the law being used to put him away - the Computer Fraud and Abuse Act, the same law that prosecutors used to go after the 26-year-old Internet activist Aaron Swart
qiyi liao

Amazon targeted in class action over vanishing e-books - 0 views

www.ecommercetimes.com/...67742.html

privacy breach rights disclosure misinformation

shared by qiyi liao on 19 Aug 09 - Cached
  • qiyi liao on 19 Aug 09
     
    Issue in contention: Amazon deleted legally purchased e-books from Kindle users without prior notice, after learning that these e-books were pirated versions. This ability of Amazon's to "remotely delete digital content purchased through the Kindle store" was never disclosed to its paying customers. In fact, its license terms seem to offer Kindle users permanent access to the files they purchase (see #). Sure, Amazon admits mishandling the issue and promises never to remove content in such circumstances again. However, ultimately, they still own that power to remove, edit content etc. What effects would that have on our society then? Consider Orwell's notion of Big Brother in "1984" (Creepily, one of the books that was removed in this mini-scandal). Also, who is/should Amazon be more accountable to? Its customers? Shareholders? Third-party publishers? (At the end of the day, it's still a profit-seeking corporation.) NB. Kindle is a platform developed by Amazon for reading e-books and other digital media. #Upon your payment of the applicable fees set by Amazon, Amazon grants you the non-exclusive right to keep a permanent copy of the applicable Digital Content and to view, use, and display such Digital Content an unlimited number of times, solely on the Device or as authorized by Amazon as part of the Service and solely for your personal, non-commercial use.
Karin Tan

Pornography as a living? - 8 views

http://www.americanchronicle.com/articles/view/104278 This article illustrates the profitability of the pornography market today, and also claims that about 12 percent of the websites available on...

pornography

started by Karin Tan on 02 Sep 09 no follow-up yet
Weiye Loh

The Dawn of Paid Search Without Keywords - Search Engine Watch (SEW) - 0 views

searchenginewatch.com/3641744

Search Engine Optimization Paid Search Capitalism

shared by Weiye Loh on 04 Feb 11 - No Cached
  • This year will fundamentally change how we think about and buy access to prospects, namely keywords. It is the dawn of paid search without keywords.
  • Google's search results were dominated by the "10 blue links" -- simple headlines, descriptions, and URLs to entice and satisfy searchers. Until it wasn't. Universal search wove in images, video, and real-time updates.
  • For most of its history, too, AdWords been presented in a text format even as the search results morphed into a multimedia experience. The result is that attention was pulled towards organic results at the expense of ads.
  • ...8 more annotations...
  • Google countered that trend with their big push for universal paid search in 2010. It was, perhaps, the most radical evolution to the paid search results since the introduction of Quality Score. Consider the changes:
  • New ad formats: Text is no longer the exclusive medium for advertising on Google. No format exemplifies that more than Product List Ads (and their cousin, Product Extensions). There is no headline, copy or display URL. Instead, it's just a product image, name, price and vendor slotted in the highest positions on the right side. What's more, you don't choose keywords. We also saw display creep into image search results with Image Search Ads and traditional display ads.
  • New calls-to-action: The way you satisfy your search with advertising on Google has evolved as well. Most notably, through the introduction of click-to-call as an option for mobile search ads (as well as the limited release AdWords call metrics). Similarly, more of the site experience is being pulled into the search results. The beta Comparison Ads creates a marketplace for loan and credit card comparison all on Google. The call to action is comparison and filtering, not just clicking on an ad.
  • New buying/monetization models: Cost-per-click (CPC) and cost-per-thousand-impressions (CPM) are no longer the only ways you can buy. Comparison Ads are sold on a cost-per-lead basis. Product listing ads are sold on a cost-per-acquisition (CPA) basis for some advertisers (CPC for most).
  • New display targeting options: Remarketing (a.k.a. retargeting) brought highly focused display buys to the AdWords interface. Specifically, the ability to only show display ads to segments of people who visit your site, in many cases after clicking on a text ad.
  • New advertising automation: In a move that radically simplifies advertising for small businesses, Google began testing Google Boost. It involves no keyword research and no bidding. If you have a Google Places page, you can even do it without a website. It's virtually hands-off advertising for SMBs.
  • Of those changes, Google Product Listing Ads and Google Boost offer the best glimpse into the future of paid search without keywords. They're notable for dramatic departures in every step of how you advertise on Google: Targeting: Automated targeting toward certain audiences as determined by Google vs. keywords chosen by the advertiser. Ads: Product listing ads bring a product search like result in the top position in the right column and Boost promotes a map-like result in a preferred position above organic results. Pricing: CPA and monthly budget caps replace daily budgets and CPC bids.
  • For Google to continue their pace of growth, they need two things: Another line of business to complement AdWords, and display advertising is it. They've pushed even more aggressively into the channel, most notably with the acquisition of Invite Media, a demand side platform. To remove obstacles to profit and incremental growth within AdWords. These barriers are primarily how wide advertisers target and how much they pay for the people they reach (see: "Why Google Wants to Eliminate Bidding In Exchange for Your Profits").
Weiye Loh

Cancer resembles life 1 billion years ago, say astrobiologists - microbiology, genomics... - 0 views

www.lifescientist.com.au/..._years_ago_say_astrobiologists

Cancer Evolution Life

shared by Weiye Loh on 17 Feb 11 - No Cached
  • astrobiologists, working with oncologists in the US, have suggested that cancer resembles ancient forms of life that flourished between 600 million and 1 billion years ago.
  • Read more about what this discovery means for cancer research.
  • The genes that controlled the behaviour of these early multicellular organisms still reside within our own cells, managed by more recent genes that keep them in check.It's when these newer controlling genes fail that the older mechanisms take over, and the cell reverts to its earlier behaviours and grows out of control.
  • ...11 more annotations...
  • The new theory, published in the journal Physical Biology, has been put forward by two leading figures in the world of cosmology and astrobiology: Paul Davies, director of the Beyond Center for Fundamental Concepts in Science, Arizona State University; and Charles Lineweaver, from the Australian National University.
  • According to Lineweaver, this suggests that cancer is an atavism, or an evolutionary throwback.
  • In the paper, they suggest that a close look at cancer shows similarities with early forms of multicellular life.
  • “Unlike bacteria and viruses, cancer has not developed the capacity to evolve into new forms. In fact, cancer is better understood as the reversion of cells to the way they behaved a little over one billion years ago, when humans were nothing more than loose-knit colonies of only partially differentiated cells. “We think that the tumours that develop in cancer patients today take the same form as these simple cellular structures did more than a billion years ago,” he said.
  • One piece of evidence to support this theory is that cancers appear in virtually all metazoans, with the notable exception of the bizarre naked mole rat."This quasi-ubiquity suggests that the mechanisms of cancer are deep-rooted in evolutionary history, a conjecture that receives support from both paleontology and genetics," they write.
  • the genes that controlled this early multi-cellular form of life are like a computer operating system's 'safe mode', and when there are failures or mutations in the more recent genes that manage the way cells specialise and interact to form the complex life of today, then the earlier level of programming takes over.
  • Their notion is in contrast to a prevailing theory that cancer cells are 'rogue' cells that evolve rapidly within the body, overcoming the normal slew of cellular defences.
  • However, Davies and Lineweaver point out that cancer cells are highly cooperative with each other, if competing with the host's cells. This suggests a pre-existing complexity that is reminiscent of early multicellular life.
  • cancers' manifold survival mechanisms are predictable, and unlikely to emerge spontaneously through evolution within each individual in such a consistent way.
  • The good news is that this means combating cancer is not necessarily as complex as if the cancers were rogue cells evolving new and novel defence mechanisms within the body.Instead, because cancers fall back on the same evolved mechanisms that were used by early life, we can expect them to remain predictable, thus if they're susceptible to treatment, it's unlikely they'll evolve new ways to get around it.
  • If the atavism hypothesis is correct, there are new reasons for optimism," they write.
  • Weiye Loh on 17 Feb 11
     
    Feature: Inside DNA vaccines bioMD makes a bid for Andrew Forest's Allied Medical and Coridon Alexion acquires technology for MoCD therapy More > Most Popular Media Releases Cancer resembles life 1 billion years ago, say astrobiologists Feature: The challenge of a herpes simplex vaccine Feature: Proteomics power of pawpaw bioMD makes a bid for Andrew Forest's Allied Medical and Coridon Immune system boosting hormone might lead to HIV cure Biotechnology Directory Company Profile Check out this company's profile and more in the Biotechnology Directory! Biotechnology Directory Find company by name Find company by category Latest Jobs Senior Software Developer / Java Analyst Programm App Support Developer - Java / J2ee Solutions Consultant - VIC Technical Writer Product Manager (Fisheye/Crucible)   BUYING GUIDES Portable Multimedia Players Digital Cameras Digital Video Cameras LATEST PRODUCTS HTC Wildfire S Android phone (preview) Panasonic LUMIX DMC-GH2 digital camera HTC Desire S Android phone (preview) Qld ICT minister Robert Schwarten retires Movie piracy costs Aus economy $1.37 billion in 12 months: AFACT Wireless smartphones essential to e-health: CSIRO Aussie outsourcing CRM budgets to soar in 2011: Ovum Federal government to evaluate education revolution targets Business continuity planning - more than just disaster recovery Proving the value of IT - Part one 5 open source security projects to watch In-memory computing Information security in 2011 EFA shoots down 'unproductive' AFACT movie piracy study In Pictures: IBM hosts Galactic dinner Emerson Network Power launches new infrastructure solutions Consumers not smart enough for smartphones? Google one-ups Apple online media subscription service M2M offerings expand as more machines go online India cancels satellite spectrum deal after controversy Lenovo profit rises in Q3 on strong PC sales in China Taiwan firm to supply touch sensors to Samsung HP regains top position in India's PC market Copyright 20
Weiye Loh

MDA says Aware needs distribution licence for DVD of 2009 meeting - 0 views

jg69.amplify.com/...icence-for-dvd-of-2009-meeting

AWARE Law Feminism Gender Equality Singapore Censorship

shared by Weiye Loh on 19 Feb 11 - No Cached
  • WOMEN'S advocacy group Aware's plan to distribute a set of DVDs of its dramatic extraordinary general meeting (EGM), held in May 2009, has hit a snag.
  • The Association of Women for Action and Research (Aware) has not been able to distribute the DVDs, as it is appealing against a requirement that it needs a government licence to do so.
  • The MDA has, in the meantime, given the DVD an M18 rating - meaning it should be seen only by those aged 18 and above.
  • ...6 more annotations...
  • Aware planned to sell the four-disc DVD box set of the EGM only to its 600 members, as an official record of the event. But its executive director Corinna Lim, 45, said an MDA official contacted her 'a few days' after news of the $100-per-set DVDs broke last October, to ask if Aware had a distribution licence. Ms Lim, a former corporate lawyer, said Aware has appealed against the need for one. She argued that the licensing requirement applies to businesses, not non-profit organisations.
  • Section 6 of the Films Act states that a person must have a valid licence in order to 'carry on any business, whether or not the business is carried on for profit, of importing, making, distributing or exhibiting films'.
  • 'I really take the view that we are not obliged to have a licence, and if they make us have a licence, they would be setting a terrible precedent for Singapore. 'That means any organisation that wants to distribute to your shareholders or just your members would need a licence.' She noted that recordings of the EGM were online, such as on video-sharing site YouTube.
  • But MDA director of customer services and operations Pam Hu told The Straits Times yesterday that the MDA has required some religious and arts groups - and not just businesses - to possess the distribution licence. Ms Hu added, however, that the MDA is reviewing Aware's appeal and would notify the group of the outcome shortly.
  • On the M18 rating, she said this is because the DVDs 'feature discussion of homosexuality and Aware's sexuality programme, which stirs up strong emotion among the members'. 'This contributed to the M18 rating as it requires maturity to understand the issues discussed and not be carried away by the emotive passion of the meeting.'
  • Observers were divided on how to interpret the law. Singapore Management University assistant law professor Eugene Tan said the language of the law does not limit its reach and thus could apply to Aware. But Professor Ang Peng Hwa, of Nanyang Technological University's Wee Kim Wee School of Communication and Information, said Aware should not need a licence as it does not distribute films in its normal course of work. 'If it needs to have a licence, that means any company that does a corporate video will also need (one). MDA will be flooded with licensing (applications),' he said.
Weiye Loh

Report: Piracy a "global pricing problem" with only one solution - 0 views

arstechnica.com/...lem-with-only-one-solution.ars

Piracy Pricing Capitalism Globalization Income Inequality

shared by Weiye Loh on 14 Mar 11 - No Cached
  • Over the last three years, 35 researchers contributed to the Media Piracy Project, released last week by the Social Science Research Council. Their mission was to examine media piracy in emerging economies, which account for most of the world's population, and to find out just how and why piracy operates in places like Russia, Mexico, and India.
  • Their conclusion is not that citizens of such piratical societies are somehow morally deficient or opposed to paying for content. Instead, they write that “high prices for media goods, low incomes, and cheap digital technologies are the main ingredients of global media piracy. If piracy is ubiquitous in most parts of the world, it is because these conditions are ubiquitous.”
  • When legitimate CDs, DVDs, and computer software are five to ten times higher (relative to local incomes) than they are in the US and Europe, simply ratcheting up copyright enforcement won't do enough to fix the problem. In the view of the report's authors, the only real solution is the creation of local companies that “actively compete on price and services for local customers” as they sell movies, music, and more.
  • ...7 more annotations...
  • Some markets have local firms that compete on price to offer legitimate content (think the US, which has companies like Hulu, Netflix, Apple, and Microsoft that compete to offer legal video content). But the authors conclude that, in most of the world, legitimate copyrighted goods are only distributed by huge multinational corporations whose dominant goals are not to service a large part of local markets but to “protect the pricing structure in the high-income countries that generate most of their profits.”
  • This might increase profits globally, but it has led to disaster in many developing economies, where piracy may run north of 90 percent. Given access to cheap digital tools, but charged terrific amounts of money for legitimate versions of content, users choose piracy.
  • In Russia, for instance, researchers noted that legal versions of the film The Dark Knight went for $15. That price, akin to what a US buyer would pay, might sound reasonable until you realize that Russians make less money in a year than US workers. As a percentage of their wages, that $15 price is actually equivalent to a US consumer dropping $75 on the film. Pirate versions can be had for one-third the price.
  • Simple crackdowns on pirate behavior won't work in the absence of pricing and other reforms, say the report's authors (who also note that even "developed" economies routinely pirate TV shows and movies that are not made legally available to them for days, weeks, or months after they originally appear elsewhere).
  • The "strong moralization of the debate” makes it difficult to discuss issues beyond enforcement, however, and the authors slam the content companies for lacking any credible "endgame" to their constant requests for more civil and police powers in the War on Piracy.
  • piracy is a “signal of unmet consumer demand.
  • Our studies raise concerns that it may be a long time before such accommodations to reality reach the international policy arena. Hardline enforcement positions may be futile at stemming the tide of piracy, but the United States bears few of the costs of such efforts, and US companies reap most of the modest benefits. This is a recipe for continued US pressure on developing countries, very possibly long after media business models in the United States and other high-income countries have changed.
  • Weiye Loh on 14 Mar 11
     
    A major new report from a consortium of academic researchers concludes that media piracy can't be stopped through "three strikes" Internet disconnections, Web censorship, more police powers, higher statutory damages, or tougher criminal penalties. That's because the piracy of movies, music, video games, and software is "better described as a global pricing problem." And the only way to solve it is by changing the price.
Weiye Loh

flaneurose: The KK Chemo Misdosage Incident - 0 views

flaneurose.blogspot.com/...-chemo-misdosage-incident.html

Medicine Technology Design Capitalism

shared by Weiye Loh on 19 Nov 09 - Cached
  • Labelling the pump that dispenses in ml/hr in a different color from the pump that dispenses in ml/day would be an obvious remedy that would have addressed the KK incident. It's the common-sensical solution that anyone can think of.
  • Sometimes, design flaws like that really do occur because engineers can't see the wood for the trees.
  • But sometimes the team is aware of these issues and highlights them to management, but the manufacturer still proceeds as before. Why is that? Because in addition to design principles, one must be mindful that there are always business considerations at play as well. Manufacturing two (or more) separate designs for pumps incurs greater costs, eliminates the ability to standardize across pumps, increases holding inventory, and overall increases complexity of business and manufacturing processes, and decreases economies of scale. All this naturally reduces profitability.It's not just pumps. Even medicines are typically sold in identical-looking vials with identically colored vial caps, with only the text on the vial labels differentiating them in both drug type and concentration. You can imagine what kinds of accidents can potentially happen there.
  • ...2 more annotations...
  • Legally, the manufacturer has clearly labelled on the pump (in text) the appropriate dosing regime, or for a medicine vial, the type of drug and concentration. The manufacturer has hence fulfilled its duty. Therefore, if there are any mistakes in dosing, the liability for the error lies with the hospital and not the manufacturer of the product. The victim of such a dosing error can be said to be an "externalized cost"; the beneficiaries of the victim's suffering are the manufacturer, who enjoys greater profitability, the hospital, which enjoys greater cost-savings, and the public, who save on healthcare. Is it ethical of the manufacturer, to "pass on" liability to the hospital? To make it difficult (or at least not easy) for the hospital to administer the right dosage? Maybe the manufacturer is at fault, but IMHO, it's very hard to say.
  • When a chemo incident like the one that happened in KK occurs, there are cries of public remonstration, and the pendulum may swing the other way. Hospitals might make the decision to purchase more expensive and better designed pumps (that is, if they are available). Then years down the road, when a bureaucrat (or a management consultant) with an eye to trim costs looks through the hospital purchasing orders, they may make the suggestion that $XXX could be saved by buying the generic version of such-and-such a product, instead of the more expensive version. And they would not be wrong, just...myopic.Then the cycle starts again.Sometimes it's not only about human factors. It could be about policy, or human nature, or business fundamentals, or just the plain old, dysfunctional way the world works.
    • Weiye Loh
      Weiye Loh on 19 Nov 09
       
      Interesting article. Explains clearly why our 'ethical' considerations is always only limited to a particular context and specific considerations. 
Weiye Loh

Data Without Borders - 0 views

flowingdata.com/...data-without-borders

Data Open Source Collaboration NGO Research Methodology

shared by Weiye Loh on 21 Jun 11 - No Cached
  • Weiye Loh on 21 Jun 11
     
    Data is everywhere, but use of data is not. So many of our efforts are centered around making money or getting people to buy more things, and this is understandable; however, there are neglected areas that could actually have a huge impact on the way we live. Jake Porway, a data scientist at The New York Times, has a proposition for you, tentatively called Data Without Borders. [T]here are lots of NGOs and non-profits out there doing wonderful things for the world, from rehabilitating criminals, to battling hunger, to providing clean drinking water. However, they're increasingly finding themselves with more and more data about their practices, their clients, and their missions that they don't have the resources or budgets to analyze. At the same time, the data/dev communities love hacking together weekend projects where we play with new datasets or build helpful scripts, but they usually just culminate in a blog post or some Twitter buzz. Wouldn't it be rad if we could get these two sides together?
Weiye Loh

Letter from Seed editor Adam Bly to ScienceBlogs.com contributors | Science | guardian.... - 0 views

www.guardian.co.uk/...logs-blogging-pepsi-bly-letter

Science Communication Blog

shared by Weiye Loh on 08 Jul 10 - Cached
  • the conversation should include scientists from academia and government; we also think it should include scientists from industry. Because industry is increasingly the interface between science and society.
  • The bloggers who blog on 'corporate blogs' on SB are necessarily credentialed scientists (we make sure of that), in some cases highly credentialed scientists who have published extensively in peer-reviewed journals. The fact that they work at a profit-making company does not automatically disqualify their science in our mind. And frankly, nor does it disqualify them in the eyes of the Nobel Prize Committee either.
  • All editorial content is written by PepsiCo's scientists or scientists invited by PepsiCo and/or ScienceBlogs. All posts carry a byline above the fold indicating the scientist's affiliation and conflicts of interest." This must be 100% transparent so our readers can evaluate the merit of the post for themselves.
  • ...4 more annotations...
  • Are we making a judgment about PepsiCo's science by hosting a blog for them on SB? No. (Nor are we making a judgment about your own research for that matter). Are we saying that they are entitled to have a seat at the table? Yes. Do they know that they are opening themselves us to debate? Absolutely. You may disagree with the substance of their posts (as you do on any other blog). You may even call into question their presence on a public forum dedicated to science. It will be up to them to respond. Better yet, it will be up to them to listen and take actions. The sustainability of this experiment lives or dies in the establishment of a transparent dialogue.
  • SB, like nearly all free content sites, is sustainable because of advertising. But advertising is itself highly unpredictable, as the last year has shown the industry. And securing advertising around topics like physics and evolution is even more challenging
  • We started experimenting with sponsored blogs a couple of years ago and decided to market long-term sponsorship contracts instead of sporadic advertising contracts. This is not a new idea: respected magazines have been doing the same thing for years (think Atlantic Ideas Festival going on now or The New Yorker Festival, where representatives of sponsoring companies sit on stage alongside writers and thinkers, or advertorials where companies pay to create content -- clearly marked as such -- instead of just running an ad). We think this may be a digital equivalent.
  • meaningful discussion about science and society in the 21st century requires that all players be at the table (with affiliations made clear), from all parts of the world, from every sector of society. And ScienceBlogs is where this is starting to happen.
  • Weiye Loh on 08 Jul 10
     
    Letter from Seed editor Adam Bly to ScienceBlogs.com contributors * Sent to bloggers in response to the controversial decision by ScienceBlogs.com to host a blog on nutrition, written by PepsiCo * Read and comment on the full story here
Magdaleine

Blur and Radiohead fight for digital rights - 2 views

http://www.techradar.com/news/internet/blur-and-radiohead-fight-for-digital-rights-580364 Musicians and bands are coming together to fight for their digital rights. The artistes are trying to figh...

digital rights

started by Magdaleine on 16 Sep 09 no follow-up yet
Jiamin Lin

Technological Freedom - 4 views

http://media.www.csucauldron.com/media/storage/paper516/news/2009/09/06/TheMeltingPot/Technological.Freedom-3759993.shtml Digital Rights Management (DRM) or should it be called "Digital Rights Mis...

started by Jiamin Lin on 16 Sep 09 no follow-up yet
qiyi liao

Online Censorship: Obama urged to fine firms for aiding censors - 3 views

Internet activists are urging Barack Obama to pass legislation that would make it illegal for technology companies to collaborate with authoritarian countries that censor the internet. -The Guardi...

started by qiyi liao on 02 Sep 09 no follow-up yet
juliet huang

Virus as a call for help, as a part of a larger social problem - 7 views

I agree with this view, and I also add on that yes, it is probably more profitable for the capitalist, wired society to continue creating anti-virus programs, open more it repair shops etc, than to...

Virus

started by Weiye Loh on 21 Aug 09 1 follow-up, last by juliet huang on 22 Aug 09
Meenatchi

China jails Windows software pirates - 8 views

Case Summary: The article is about an intellectual property infringement that took place in China. A court in Eastern China has sentenced four people to up to three-and-a-half years in prison for ...

Intellectual property rights software piracy

started by Meenatchi on 25 Aug 09 no follow-up yet
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