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Innovation Blues

RSA Animate - Choice - YouTube - 0 views

  • Professor Renata Salecl explores the paralysing anxiety and dissatisfaction surrounding limitless choice.
Innovation Blues

Information asymmetry - Wikipedia, the free encyclopedia - 0 views

  • In economics and contract theory, information asymmetry deals with the study of decisions in transactions where one party has more or better information than the other. This creates an imbalance of power in transactions which can sometimes cause the transactions to go awry, a kind of market failure in the worst case. Examples of this problem are adverse selection,[1] moral hazard, and information monopoly.[2] Most commonly, information asymmetries are studied in the context of principal–agent problems. In 2001, the Nobel Prize in Economics was awarded to George Akerlof, Michael Spence, and Joseph E. Stiglitz "for their analyses of markets with asymmetric information."[3]
  • Information asymmetry models assume that at least one party to a transaction has relevant information whereas the other(s) do not. Some asymmetric information models can also be used in situations where at least one party can enforce, or effectively retaliate for breaches of, certain parts of an agreement whereas the other(s) cannot.
  • In adverse selection models, the ignorant party lacks information while negotiating an agreed understanding of or contract to the transaction, whereas in moral hazard the ignorant party lacks information about performance of the agreed-upon transaction or lacks the ability to retaliate for a breach of the agreement. An example of adverse selection is when people who are high risk are more likely to buy insurance, because the insurance company cannot effectively discriminate against them, usually due to lack of information about the particular individual's risk but also sometimes by force of law or other constraints. An example of moral hazard is when people are more likely to behave recklessly after becoming insured, either because the insurer cannot observe this behavior or cannot effectively retaliate against it, for example by failing to renew the insurance.
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  • This idea was originally studied in the context of looking for a job. An employer is interested in hiring a new employee who is "skilled in learning." Of course, all prospective employees will claim to be "skilled at learning", but only they know if they really are. This is an information asymmetry. Skill in learning is malleable, and depends upon many factors, including diet, exercise and money. Spence proposes, for example, that going to college can function as a credible signal of an ability to learn. Assuming that people who are skilled in learning can finish college more easily than people who are unskilled, then by finishing college the skilled people signal their skill to prospective employers. No matter how much or how little they may have learned in college, finishing functions as a signal of their capacity for learning. However, finishing college may merely function as a signal of their ability to pay for college, it may signal the willingness of individuals to adhere to orthodox views, or it may signal a willingness to comply with authority.
  • Signaling Michael Spence originally proposed the idea of signaling. He proposed that in a situation with information asymmetry, it is possible for people to signal their type, thus believably transferring information to the other party and resolving the asymmetry.
  • Screening Joseph E. Stiglitz pioneered the theory of screening. In this way the underinformed party can induce the other party to reveal their information. They can provide a menu of choices in such a way that the choice depends on the private information of the other party. Examples of situations where the seller usually has better information than the buyer are numerous but include used-car salespeople, mortgage brokers and loan originators, stockbrokers and real estate agents.
  • Examples of situations where the buyer usually has better information than the seller include estate sales as specified in a last will and testament, life insurance, or sales of old art pieces without prior professional assessment of their value.
  • Because of information asymmetry, unscrupulous sellers can "spoof" items (like replica goods such as watches) and defraud the buyer. As a result, many people not willing to risk getting ripped off will avoid certain types of purchases, or will not spend as much for a given item. It is even possible for the market to decay to the point of nonexistence.
Innovation Blues

Science of morality - Wikipedia, the free encyclopedia - 0 views

  • Even the Buddhist ideal of having no desires, and hence no unsatisfied desires, is extremely difficult to achieve and maintain for a whole society – not least of all for younger people (who, Daleiden says, have less self control). Science of morality could never yield a utopia. Nevertheless, science of morality could greatly increase well-being for very many people.[54]
  • Daleiden's last factor in prosocial training, mental associations, is quite familiar: he says it has been traditionally understood as the conscience – where the student learns to feel empathy, and to feel regret for harming others. Unless an individual can, and begins to feel empathy, it may be unlikely that any amount of reasoning, or any coherent moral system will motivate them to behave very altruistically.
  • it should be the intention of adults to shape children, or presumably "indoctrinate" them, to think critically. He adds that the focus is on especially socially relevant values (e.g. kindness, sharing, reasoning) and not the more personal
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  • Religion, although it is not the best method of determining moral norms, has often been very effective at promoting them. Religions often satisfy many of Daleiden's criteria for raising people to be conditioned egoists, especially by practicing the aforementioned elements of prosocial training. He suggests that this is what they are doing when they instill a sense of virtue and justice, right and wrong.
  • Aldous Huxley's novel Brave New World and George Orwell's 1984 imagine dystopian future societies that control the populace by advanced scientific techniques. Harris argues that moral scientists approaching truths does not imply an "Orwellian future" with "scientists at every door". Instead, Harris imagines data about normative moral issues being shared in the same way as other sciences (e.g. peer-reviewed journals on medicine).
  • Science of morality should identify basic components required for human flourishing, drawing heavily on findings from positive psychology. In a proto-scientific example, Abraham Maslow suggested a hierarchy of needs: basic physical survival, then social and self esteem needs, and lastly philosophical and self-actualization.
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  • Research looking for optimal ethical systems can draw on all the methods of science, especially those used by positive psychology. While this might include obvious methods like asking people to self-report what they think they need to flourish in life – psychology has shown that people are often surprisingly incorrect on these matters (particularly when it comes to making predictions and recollections). Some cases in point: having too many varieties of consumer goods actually creates consumer choice anxiety; when it comes to removing bandages, Dan Ariely's research suggests that "getting it over with as quickly as possible" may cause more negative memories than if one went slowly (with breaks) while being careful never to reach a 'peak' in pain; stress is not always harmful (such stress is called eustress). While very careful use of self-report can still be illuminating (e.g. bogus pipeline techniques), in the end, unconscious methods of inquiry seem to be more promising. Some unconscious methods of data collection include the Implicit Association Test and neuroimaging. In these ways, science can further our understanding of what humans need to flourish, and what ways of organizing society provide the greatest hope for flourishing.
  • Extensive study of cooperation has shed some light on the objective (and subjective) advantages of teamwork and empathy. The brain areas that are consistently involved when humans reason about moral issues have been investigated by a quantitative large-scale meta-analysis of the brain activity changes reported in the moral neuroscience literature.[76] In fact, the neural network underlying moral decisions overlapped with the network pertaining to representing others' intentions (i.e., theory of mind) and the network pertaining to representing others' (vicariously experienced) emotional states (i.e., empathy).
  • There is evidence to suggest that a risk factor for becoming victims of bullying is deficient moral development. Examples of deficient moral development may be something like neglecting an agent's intentions during an action, or blaming them for accidents. In other words, victims of bullying may be more likely to make less accurate moral assessments, for some reason. The researchers also found that, in contrast, bullies were just as morally developed as victim defenders. The difference is that bullies are more able to disengage themselves. That is, for whatever reason, bullies end up suppressing their feelings of compassion and conscience.[77]
Innovation Blues

Helium - Where Knowledge Rules - 0 views

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    At Helium, we believe that everyone can contribute what they know to share with millions of readers around the globe. At Helium, we believe readers want a choice of viewpoints - not just one opinion on any subject. At Helium, we believe publishers need an easier, more efficient way to get the content they need.
Innovation Blues

Linux Config - 0 views

  • This is a LinuxConfig.org's last post ! Over 4 years I have been working on this project with a single aim and that is to deliver Linux Tutorials and Linux guidance to anyone who possess an Internet connection and thus promoting GNU/Linux as an Operating System of choice.
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