MARCO:
The Nobel Award 2001 in Economic Sciences has been assigned to three
American economists (Akerlof, Spence and Stigliz), "for their analyses of
markets with asymmetric information" (see below). In few words they have
analyzed how a different quantity and/or quality of information in the hand
of one of the actors impacts the market.
ROG:
Strange coincidence! I cut out an article from a recent Wall Street Journal
that caught my eye on this topic. (It was of both professional and personal
interest to me)
MARCO:.
IMO another interesting offspring of the "Asymmetric information" theory is
about the (in)famous never ending thread about the free-market and a
possible intellectual superiority over the social level. On one side, we
have the pure capitalism supporters, well convinced that no intellectual
pattern should influence the market freedom.
ROG:
As you know, I am a balanced capitalist (middle ground on your scale) who
sees a strong need for underlying support systems to actively foster the free
market. Rule-of-law. Property rights. Accounting standards. Constitutional
liberties. Investment mechanisms. Warranties. Copywrite and patent laws,
etc. These can be centralized or decentralized in nature (ie not just
governmental)
I believe that these systems of support are themselves measures of knowledge
for a society, as are infrastructure, roads and airports, private
distribution networks, thriving economic interests, environmental
organizations, etc. In other words, I would extend the knowledge metaphor to
Patterns of Knowledge that extends out to all successful abilities of a
society to influence reality. (I am basically substituting POV's with POK's
-- Patterns of KNOWLEDGE)
MARCO:
On the other side, a lot of
critical voices on capitalism hold the necessity of helping the third world,
despite the evidence that usually concrete helps get wasted. Well, I'm not
an economist, but I think that from these studies comes out that if we want
really to have a free and fair market, we should supply the weak economies
with information, even before than giving them money or other goods.
ROG:
My thoughts match what is above exactly. The way to help those that have not
developed effective economies is to export the knowledge. This uses my very
inclusive above definition of the word. It not only includes education,
science, inventions and copywrite data, it also includes accounting
standards, investment processes, more's on birth control, etc. By the way,
exporting knowledge (thus reducing assymetry) will imo increase wealth for
ALL parties.
MARCO:
By the way, one of those economists, Joseph Stiglitz, apparently has been
forced to resign from the IMF for his ideas.....
ROG:
Really? Hmmmm. He was a Clinton appointee who I hear strongly recommended
centralized solutions to info assymetry.
Rog
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