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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

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

Overview of Online Project Management & Planning Software | Clarizen - 0 views

  • All Together NowClarizen’s pure SaaS-based project execution platform goes beyond project management, giving your whole team a centralized environment to manage projects, tasks, resources, budgets – as well as associate emails, chat and documents - with in an intuitive, easy to use UI. Project managers and organizations get real-time visibility and clarity, enabling them to make decisions based on data, not guesswork.  Users of the system gain a flexible, task management tool to help them understand priorities and get the important work done on time.
  • The Project Software Your Team will UseClarizen has great adoption rates, because it is provides each user a personalized dashboard showing only tasks, conversations, and documents that are relevant to them. As each user updates their status, using email, mobile apps, or from within Clarizen, this data rolls up to the manager’s view. As a project manager or executive, you have full visibility to plan, delegate, and get real-time status into what your team is working on.
  • Real-Time Visibility to Your Projects' StatusGain real-time visibility to your project's status by empowering team members to take an active role in managing their own time and tasks. You can define your project's key deliverables and get immediate visibility about where you stand with Clarizen’s unique Roadmap view. Set your roadmap as an external widget, and share your progress with your team, your exec team, and even your customers or suppliers. Stay current through email alert notifications and easy-to-understand personalized dashboards. Know exactly what is new for you and what requires your attention, according to your role and responsibilities.
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  • Combining Project Structure with CollaborationClarizen marries project management with collaboration, ensuring that all email, chat and other unstructured communications are associated within the context of a project.  The result is a work management environment with robust simplicity: Clarizen is feature-rich and powerful enough for the most seasoned project professional, yet it’s easy for a novice to begin working more productively as soon as they begin using Clarizen.
  • Start Today!Online project management software offers many benefits. A pure SaaS model means rapid ROI, minimal IT intervention, and ensures users are always working with the latest version of the application. Clarizen’s flexible and simple pricing model – no up-front investment and no hidden costs, allows you to add or subtract users as needed, adjusting your investment to your project planning and business needs.Best of all, you can login and get started immediately!
Innovation Blues

I dug deep into the last 9 months of r/postcollapse and found the following posts that ... - 0 views

  • PostCollapse
  • Top ten ways not to survive (xpost from /r/survivalist) 9 months ago by Theon Skills to surive the end of the world as we know it (xpost from /r/survivalist) 9 months ago by Theon Why the Survivalists Have Got It Wrong. Transition Culture 6 months ago by [deleted] From disaster mitigation to nutrition to raising livestock, this online database has all the information you need 6 months ago by Dodged The WHO Model List of Essential Medicines- absolutely essential reading. 6 months ago by Baeocystin Best form of defense in a country where firearms are illegal? 6 months ago by EldestPort Simple Critical Infrastructure Maps, and a systemic approach to threat modeling 5 months ago by hexayurt Pocket Ref: A must have! 5 months ago by PwnwallJackson US Army Field Survival Guide pdf 5 months ago by samattos
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