Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. Microeconomics focuses on the study of individual markets, sectors, or industries as opposed to the national economy as a whole, which is studied in macroeconomics.
In economics, a network effect is the phenomenon by which the value or utility a user derives from a good or service depends on the number of users of compatible products. Network effects are typically positive feedback systems, resulting in users deriving more and more value from a product as more users join the same network. The adoption of a product by an additional user can be broken into two effects: an increase in the value to all other users and also the enhancement of other non-users' motivation for using the product.
Standardization or standardisation is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups, standards organizations and governments. Standardization can help maximize compatibility, interoperability, safety, repeatability, or quality. It can also facilitate a normalization of formerly custom processes.
A license (US) or licence (Commonwealth) is an official permission or permit to do, use, or own something.
Metcalfe's law states that the financial value or influence of a telecommunications network is proportional to the square of the number of connected users of the system. The law is named for Robert Metcalfe and first proposed in 1980, albeit not in terms of users, but rather of "compatible communicating devices". It later became associated with users on the Ethernet after a 13 September 1993 Forbes article by George Gilder.
Information goods are commodities that provide value to consumers as a result of the information it contains and refers to any good or service that can be digitalized. Examples of information goods includes books, journals, computer software, music and videos. Information goods can be copied, shared, resold or rented. Information goods are durable and thus, will not be destroyed through consumption. As information goods have distinct characteristics as they are experience goods, have returns to scale and are non-rivalrous, the laws of supply and demand that depend on the scarcity of products do not frequently apply to information goods. As a result, the buying and selling of information goods differs from ordinary goods. Information goods are goods whose unit production costs are negligible compared to their amortized development costs. Well-informed companies have development costs that increase with product quality, but their unit cost is zero. Once an information commodity has been developed, other units can be produced and distributed at almost zero cost. For example, allow downloads over the Internet. Conversely, for industrial goods, the unit cost of production and distribution usually dominates. Firms with an industrial advantage do not incur any development costs, but unit costs increase as product quality improves.
Information economy is an economy with an increased emphasis on informational activities and information industry, where information is valued as a capital good. The term was coined by Marc Porat, a graduate student at Stanford University, who would later co-found General Magic.
Antoine Augustin Cournot was a French philosopher and mathematician who also contributed to the development of economics.
Information economics or the economics of information is the branch of microeconomics that studies how information and information systems affect an economy and economic decisions.
Hal Ronald Varian is Chief Economist at Google and holds the title of emeritus professor at the University of California, Berkeley where he was founding dean of the School of Information. Varian is an economist specializing in microeconomics and information economics.
Organizational intelligence (OI) is the capability of an organization to comprehend and create knowledge relevant to its purpose; in other words, it is the intellectual capacity of the entire organization. With relevant organizational intelligence comes great potential value for companies and organizations to figure out where their strengths and weaknesses lie in responding to change and complexity.
A two-sided market, also called a two-sided network, is an intermediary economic platform having two distinct user groups that provide each other with network benefits. The organization that creates value primarily by enabling direct interactions between two distinct types of affiliated customers is called a multi-sided platform. This concept of two-sided markets has been mainly theorised by the French economists Jean Tirole and Jean-Charles Rochet and Americans Geoffrey G Parker and Marshall Van Alstyne.
A knowledge market is a mechanism for distributing knowledge resources. There are two views on knowledge and how knowledge markets can function. One view uses a legal construct of intellectual property to make knowledge a typical scarce resource, so the traditional commodity market mechanism can be applied directly to distribute it. An alternative model is based on treating knowledge as a public good and hence encouraging free sharing of knowledge. This is often referred to as attention economy. Currently there is no consensus among researchers on relative merits of these two approaches.
Carl Shapiro is an American economist and academic who serves as the Transamerica Professor of Business Strategy at the University of California, Berkeley, Haas School of Business. He is the co-author, along with Hal Varian of Information Rules: A Strategic Guide to the Network Economy, published by the Harvard Business School Press. On February 23, 2011, The Wall Street Journal reported that President Barack Obama intended to nominate Shapiro to his Council of Economic Advisers.
Although information has been bought and sold since ancient times, the idea of an information marketplace is relatively recent. The nature of such markets is still evolving, which complicates development of sustainable business models. However, certain attributes of information markets are beginning to be understood, such as diminished participation costs, opportunities for customization, shifting customer relations, and a need for order.
The network economy is the emerging economic order within the information society. The name stems from a key attribute - products and services are created and value is added through social networks operating on large or global scales. This is in sharp contrast to industrial-era economies, in which ownership of physical or intellectual property stems from its development by a single enterprise. Business models for capturing ownership rights for value embedded in products and services created by social networks are being explored.
In organizational theory, dynamic capability is the capability of an organization to purposefully adapt an organization's resource base. The concept was defined by David Teece, Gary Pisano and Amy Shuen, in their 1997 paper Dynamic Capabilities and Strategic Management, as the firm’s ability to engage in adapting, integrating, and reconfiguring internal and external organizational skills, resources, and functional competences to match the requirements of a changing environment.
Gary J. Shapiro is an acclaimed author, lobbyist, and the president and CEO of the Consumer Technology Association which represents over 1500 consumer technology companies and owns and produces the Consumer Electronics Show (CES). Shapiro is the author of the bestselling books Ninja Future: Secrets to Success in the New World of Innovation, Ninja Innovation: The Ten Killer Strategies of the World’s Most Successful Businesses and The Comeback: How Innovation Will Restore the American Dream. Through these books, media interviews, and opinion pieces in publications such as The Wall Street Journal, The New York Times and The Washington Post, Shapiro explains the economic importance of innovation. He is considered an “influencer" on LinkedIn, and is a speaker at conferences including DLD, Milken, The Next Web and SXSW.
The economics of digitization is the field of economics that studies how digitization, digitalisation and digital transformation affects markets and how digital data can be used to study economics. Digitization is the process by which technology lowers the costs of storing, sharing, and analyzing data. This has changed how consumers behave, how industrial activity is organized, and how governments operate. The economics of digitization exists as a distinct field of economics for two reasons. First, new economic models are needed because many traditional assumptions about information no longer hold in a digitized world. Second, the new types of data generated by digitization require new methods for their analysis.
The Varian Rule holds that "A simple way to forecast the future is to look at what rich people have today; middle-income people will have something equivalent in 10 years, and poor people will have it in an additional decade." It is attributed to Google’s chief economist Hal Varian. Andrew McAfee first called it "the Varian Rule" in the Financial Times. An alternative interpretation put forth by The Guardian writer Evgeny Morozov is that "Luxury is already here – it’s just not very evenly distributed."
