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The economy


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  • Folgend behandlung eine marktökonomieBegrenztes angebot durch kapazitätsmaximaTheoretisch unbegrenzte nachfrageRegulierung der beiden kräfte durch den markt (law of demand and supply)Koordinierung und Eigentum - Zentrale fragen: Was, Wie und für wen produzieren?Einfluss auf Preis abhängig von Marktstruktur (Oligopol-etwas, Monopol-viel, monopolistischer wettbewerb-etwas)
  • Hohe Entwicklungskosten (Bsp Windows Betriebssystem) Niedrige Reproduktionskosten (Bsp. Kopieren von Software) Online-Datenspeicher und Internet/Telcokosten immer günstiger (Economies of scale & scope [degressions und verbundeffect])Netzwerke erleichtern wichtige markt penetration und erhöhen nachfrage ab kritischer masseAngebotsüberfluss: DVD Verleih beschränktes Angebot, Netflix unbeschränktes Angebot; the long tail: Chris anderson, 80% des möglichen gesamtumsatzes liegt in nicht-mainstream titelnSonst möglich: Multipler Besitz, Nicht-Ausschliessbarkeit, einfache Verteilung,
  • Oversupply: Information overload and unlimited capacityIrrDemand: Kosten-Nutzen Analyse wird nicht angewandt bei gratisImportance: kritische Masse entscheidet über ErfolgPower of C.: Anbieter durch Markt gezwungen for free anzubieten, competition already free.
  • Ressourcen sind knapp (Geld, Arbeit, Kapital), es muss gewirtschaftet werden, Indifferenz kurven (utility of both things equal, but decision under budget constraint has to be made)Ziel: Maximaler nutzen mit gegebenen ressourcen (Individuen: Eigeninteresse, Firmen: maximaler profit)Substitutseffekt: ein produkt hat höheren nutzen Einkommenseffekt: mehr einkommen, mehr nachfrage, u.U. geänderte NachfrageBild: Beispiel mit 2 produkten, optimale nachfragekombination
  • Transcript

    • 1. The EconomyBy Mapaseka Ayanda Dube
    • 2. What is the knowledge economy? Capital Labor Knowledge society - Andre Saito The knowledge economy and Agricultural age Industrial age Land Knowledge age• Knowledge has become the main resource• The pace of innovation is accelerating (not only in products and services, but also in processes, markets, sourcing, business models, etc.) 2
    • 3. Are terms like Knowledge “Economy” and “Information Society” useful? For what? Views vary .. Manchester Institute of Innovation A lot of change, some All sound and fury - not fundamentals are really much serious shifting Research change A lot of action, but no A lot of change, shaking the strong common foundations of institutionalthemes, no central axis structures for a new social formation Immense change in the nature of A lot of action, but the societies – value creation, ground-rules stay the equality, power, leadership, etc… same
    • 4. UniversalThings like…. - Laws of Nature - Essential natures of things - Mathematical and logical theorems Plato
    • 5. Key Features Manchester Institute of Innovation TECHNOLOGICAL•Information Society Research •Knowledge Economy 1)Hard to differentiate; so common list: Internet; computers, comm standards, e-devices; cross-discipline techs, 2) Diffusion of tech from large institutions to individuals, empowerment: Internet – user-generated content and software 3) IS – advent of computers; KIS: mode 2; biotechnologies
    • 6. TRADITIONAL ECONOMYSupply, Demand & Equilibrium • Limited supply • Unlimited demand • Law of demand and supply • Market mechanism of coordination & ownership • Price takers vs. price makers 6 Figure: Craven, John (1990): Introduction to Economics, p.61
    • 7. Knowledge has different properties• Low rivalry (usually said non-rivalry) Use by one person does not diminish it• Low excludability (usually said partial excludability) It is difficult to prevent others from using it society - Andre Saito The knowledge economy and• Knowledge is both input and output Today’s innovations feed tomorrow’sIn other words… • Knowledge is an infinite resource • Knowledge tends to spread 7
    • 8. DIGITAL ECONOMYDIGITAL GOODS HAVE…  High first-copy costs (Fixed costs)  Low marginal costs  Declining infrastructure costs (processing, storage, bandwidth)  Economies of networks  Abundance rather than scarcity  Amazon: 2,3 Mio books 8  Bookshop: 40-100.000 books Figures: compiled by author, based on Stahler (2001): Geschaftsmodelle in der digitalen Okonomie, p.197
    • 9. FREE ECONOMYCHARACTERISTICS  Over-supply  Increasing storage & processing capacity at decreasing costs  Unlimited “shelf-space” of digital businesses  Demand  Irrational behavior with free products  No cost-benefit analysis at zero price  Difficult to map utility  No-cost = no disadvantage  Power of competition  Webmail: Google & Yahoo  Critical mass crucial 9
    • 10. TRADITIONAL ECONOMYConsumer Behavior • Choice under scarcity • Self interest vs max profit • Max Utility with limited budget • Substitute & Income effect influence demand 10 Figure: Mankiw, N. Gregory and Taylor, Mark P. (2006): Microeconomics: Microeconomics, p.432
    • 11. Problems with this “Information Sector” Approach Manchester Institute of Innovation “Information Occupations” are not the only Information-Processors. They are specialised and Research visible ... but are they more significant, more sophisticated? Would new IT be used to replace human effort especially here?  Problems of Classification: (a) Boundary Cases (b) Heterogeneity  Periodisation issues – in what way is “information society” (in this view) now a new stage rather than a step in a trend?
    • 12. Organizational level• External issues • Scan the environment (e.g., public policies, S&T development, competitors’ behavior, etc. • Improve knowledge creation and transfer through collaborative arrangements and acquisitions society - Andre Saito The knowledge economy and • Open channels with customers and society• Internal issues • Develop absorptive and innovative capacity • Manage knowledge work and workers • Explore contracting and outsourcing alternatives 12
    • 13. Sectoral Workforce skills (educational levels) HIGH SKILL Data on EU workforce, 2000 Knowledge-intensive services Low-skill services Education Medium-skill services Business Sers._ Health & Soc. Sers. Other Sers. FIRE Manufacturing TradeLOW Agriculture Transport MEDIUMSKILL HORECA Pub. Admin. SKILL
    • 14. Firms and Sectors• Society (concept of eco-services, informal economy and self-services)• Formal Economy (in-house services, plus services delivered to others - sometimes sold - by non-service firms)• Services Sectors (main activity concept of eco-services)• Knowledge-Intensive Services• Business-Related Services• Business Services• Knowledge-Intensive Business Services
    • 15. Firms and Sectors Society Formal Economy Services Sectors Knowledge-Intensive Services Business-Related Services Business Services Knowledge-Intensive Business Services
    • 16. Porat’s Picture 4 sector aggregation of Manchester Institute of Innovation US workforce Agricultural  Industrial  Information Info Research Serv Mfg Agr 1860 1880 1900 1920 1940 1960 1980
    • 17.   Knowledge Economy Manchester Institute of Innovation• Less of a technological focus….• Less specifically information technology… Research• Greater reliance on innovation and thus on innovation- facilitating knowledge in industry – increasing R&D, dependence on hi-tech products and processes• (Other types of knowledge important too – for innovation and coordination – thus greater share of knowledge workers and use of KIBS)• Increased investment in knowledge production (=R&D), distribution (=education), management (knowledge management), etc.
    • 18. References• Christian Dahlhausen, Dirk Schreiber, Rainer Clement(2008), Free Economy. University of Applied Science• Ian Miles(2008), Knowledge Economy and Information Society.• Ian Miles (2009), Knowledge Intensive Service firms, sectors, systems.Centre for Service Research & MIoIR,Manchester Business School• Katsuhiro Umemoto (2006), The Knowledge Economy and the Knowledge Society.• Stephen Downes(2007), Future Knowledge Society.