Dear colleagues,
Whats your opinion on the top-10 most popular/basic theories in the field of information (technology) and economics? That answer the question "how information collection, distribution and storage affects economies"
Thank you!
I would say that the most popular economic theory on ITC sector is and will be one based on ‘network effects’. Most valuations of innovative start-ups by venture capital funds are based on assumptions of the occurrence and intensity of these effects. Otherwise, it would not be possible to multiply the investment value for these risky projects. In general, mainstream economic theory is quite outdated (often based on the conditions of the industrial economy in the 19th century). I would therefore look for relevant theories in heterodox economics.
Complete information is a prerequisite for market equilibrium; Lack of information or even incorrect information are disruptive factors in simple competitive contexts. I recommend that you study introductory textbooks on microeconomics in order to be able to answer this question yourself. But the following short Wikipedia article might also be helpful!
https://en.wikipedia.org/wiki/Complete_information
There is an information theory of value by Valtukh K.K., you can try to develop your own approach based on it. But from my point of view, it is too narrowly focused. I am developing the entropy theory of value on my own. You can read my work on this topic.
Conference Paper Особенности динамики энтропии в социально-экономических сист...
Conference Paper Дихотомия энтропии в экономике (DICHOTOMY OF ENTROPY IN ECONOMY)
Article The management of entropy: behavior dichotomy of economic actor
Hans George,
Market equilibrium is a economic model, because does´t exist it. It is a situation where for a particular good supply = demand, rather there is an imbalance in the market.
Markets experience imbalances create: disequilibrium prices, surpluses, and shortages.
Best regards
Information economics is a branch of economics that examines the role of information in economic decision-making. Some of the most popular theories in information economics include: -
1) Adverse selection: This theory explores the problem of information asymmetry in which one party has more information than the other, leading to adverse outcomes. In adverse selection, one party has more information than the other, leading to an unequal exchange.
2) Moral hazard: This theory explores the risk-taking behavior that occurs when one party is protected from the consequences of their actions. When an agent is protected from the risks of their behavior, it can lead to moral hazard.
3) Signaling theory: This theory examines how individuals or firms can convey their true characteristics or abilities to others. It suggests that individuals may use certain signals or behaviors to demonstrate their abilities to others.
4) Screening theory: This theory explores the idea that individuals or firms can use certain screening mechanisms to gather information about potential partners or employees.
5) Information cascades: This theory examines how individuals may follow the actions of others without having full information, leading to a cascade of decisions that may not be optimal.
6) Principal-agent theory: This theory explores the relationship between a principal and an agent, where the principal hires the agent to perform a task on their behalf. It examines how incentives can be used to align the interests of the principal and agent.
7) Auction theory: This theory explores how information affects the outcome of auctions. It examines how bidders use their information to bid strategically and how the auction format can affect the final price.
Overall, information economics is a rich field with many important theories and insights that have applications in a wide range of industries and settings.
@Daniil Lobov
Lazaro ATHANAS Mwonge
These articles can help you get a clear picture of information and economy.
file:///C:/Users/Micro/Downloads/20545452.pdf
https://www.jstor.org/stable/1879431
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