Monowaruz Zaman

Economics of Information Biasing Monowaruz Zaman

The "Economics of Information Biasing (EIB)" focuses on information sharing strategies of individuals and their impact on institutions and human values. It introduces a simplified modeling of institutional constraints that can be applied to find out solutions of our economic problems. In real world economy, probability of achieving Pareto efficiency for a subset of population is much higher than that for the whole population. This model is enhanced to describe that our market is not uniform but distributed in layers of energy states. The probability of achieving Pareto efficiency decreases down along the market energy states. A social or economic problem can be subjectively modeled as an information biasing chain where individuals are positioned in different abstract coalitions according to interdependence of their payoff functions. The upper layer coalitions virtually control the institutions and they have greater influences on our economy. A biasing chain constitutes a values framework. The solution of many economic, social and ecological problems that are yet challenges to our policy makers may require our existing values framework to improve.