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Innovation Blues

Ben Franklin on Patents; in which he provides a Selfless model for Sharing an... - 0 views

  • Ben Franklin on Patents; in which he provides a Selfless model for Sharing and Cooperation; Inspires us with his Generosity; and Lends Moral Authority to the Principles of Free Culture…
  • in 1742, invented an open stove for the better warming of rooms, and at the same time saving fuel, as the fresh air admitted was warmed in entering, I made a present of the model to Mr. Robert Grace, one of my early friends, who, having an iron-furnace, found the casting of the plates for these stoves a profitable thing, as they were growing in demand.
  • Gov’r. Thomas was so pleas’d with the construction of this stove, as described in it, that he offered to give me a patent for the sole vending of them for a term of years; but I declin’d it from a principle which has ever weighed with me on such occasions, viz., That, as we enjoy great advantages from the inventions of others, we should be glad of an opportunity to serve others by any invention of ours; and this we should do freely and generously.
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  • Benjamin Franklin, Autobiography
  • Reading about free software specifically and free culture in general causes a dangerous uptick in my idealism index. Idealism in the sense of hoping and even believing that we can all get along. (Somehow. Someday.) That we can help each other. I think I had a healthy share of idealism growing up but gradually over the years I’ve addressed this vulnerability by developing an outer shell of jaded cynicism. It’s much more comforting to have no hope than to have hopes that can be crushed. However, there is a good chance with this strategy that your heart will shrink a couple of sizes.
  • But then I read essays by Richard Stallman, listen to speeches by Eben Moglen, and read and listen to many other hopeful voices, and I start to see something better. Like Fox Mulder, I want to believe. Which of course is dangerous. You leave yourself open to ridicule if you believe. You might be dismissed as being naive. To which of course we should say, “So what?” I want to believe that we can do better.
  • The great moral question of the twenty-first century is: If all knowledge, all culture, all art, all useful information, can be costlessly given to everyone at the same price that it is given to anyone — if everyone can have everything, everywhere, all the time, why is it ever moral to exclude anyone from anything? If you could make lamb chops in endless numbers by the mere pressing of a button, there would be no moral argument for hunger ever, anywhere. I see no system of moral philosophy generated by the economy of the past that could evolve a principle to explain the moral legitimacy of denial in the presence of infinite profusion.
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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  • 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.
  • 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.
  • 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

Caffeine: A User's Guide to Getting Optimally Wired - Developing Intelligence - 0 views

  • Caffeine: A User’s Guide to Getting Optimally Wired
  • Caffeine is the most widely used stimulant in the world, but few use it to maximal advantage. Get optimally wired with these tips.
  • 1) Consume in small, frequent amounts. Between 20-200mg per hour may be an optimal dose for cognitive function. Caffeine crosses the blood-brain barrier quickly (owing to its lipid solubility) although it can take up to 45 minutes for full ingestion through the gastro-intestinal tract. Under normal conditions, this remains stable for around 1 hour before gradually clearing in the following 3-4 hours (depending on a variety of factors). A landmark 2004 study showed that small hourly doses of caffeine (.3mg per kg of body weight [approx 20 mg per hour; thanks digg!]) can support extended wakefulness, potentially by counteracting the homeostatic sleep pressure, which builds slowly across the day and acts preferentially on the prefrontal cortex (an area of the brain thought responsible for executive and “higher” cognitive functions).
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  • 2) Play to your cognitive strengths while wired. Caffeine may increase the speed with which you work, may decrease attentional lapses, and may even benefit recall – but is less likely to benefit more complex cognitive functions, and may even hurt others. Plan accordingly (and preferably prior to consuming caffeine!)
  • Recall from memory may be improved by caffeine (here and here), possibly due to enhancements in memory encoding rather than retrieval per se. Another study shows caffeine can actually impair estimates of “memory scanning” speed (in the Sternberg paradigm), so the failure of many studies to find recall-related effects of caffeine may reflect a speed-accuracy tradeoff at the time of retrieval.
  • 3) Play to caffeine’s strengths. Caffeine’s effects can be maximized or minimized depending on what else is in your system at the time. The beneficial effects of caffeine may be most pronounced in conjunction with sugar. For example, one factor analytic study has shown caffeine-glucose cocktails provide benefits to cognition not seen with either alone.
  • Withdrawal symptoms can onset within 12 to 24 hours of caffeine consumption and last between 2 and 9 days.
  • some studies show grapefruit juice might keep caffeine levels in the bloodstream high for longer, though others have found no such effect
  • Similarly, nicotine may speed the metabolism of caffeine.
  • 4) Know when to stop – and when to start again. Although you may not grow strongly tolerant to caffeine, you can become dependent on it and suffer withdrawal symptoms. Balance these concerns with the cognitive and health benefits associated with caffeine consumption – and appropriately timed resumption.
  • Long-term ingestion of large quantities of caffeine (by way of coffee) is associated with a variety of health benefits – not only cognitive enhancements but also reduction in risk for type 2 diabetes (c.f.), Alzheimer’s and Parkinson’s . These beneficial effects may be related to the neuroprotective role of adenosine.
  • Caffeine’s effects might be masked by green tea extract, Kava Kava or St. John’s Wort – all of which contain theanine and are associated with subjective feelings of relaxation – but other preliminary evidence indicates the opposite effect: theanine might actually potentiate the benefits of caffeine on some tasks (reported in longer format here).
  • In addition, there are well-established cognitive effects where recall is best when it matches the context of encoding – so if you’re caffeinated when you study for the test, you better be caffeinated when you take it.
  • 5) Finding good sources of caffeine Despite the huge variety of sources of caffeine – including caffeinated soap, candy, and of course chocolate – the optimal use of caffeine is likely to involve small, hourly doses along with some cardioprotective agent. Given the high solubility of caffeine, absorption time should not be an issue (but if for some reason it is, try gum). Otherwise, why not enjoy a cup of green tea (coffee-flavored, if you must), as the Chinese have for nearly 5000 years? It’s hard to come by a better longitudinal study than that.
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