HARPALSINH A.RATHODIIPM-A’BAD. FB/2011-13/PGP/IIPM-D.Harpalsinh A Rathod.Introduction of mesoEconomicsPGP/FB/2011-13/IIPM/D
HARPALSINH A.RATHODIIPM-A’BAD. FB/2011-13/PGP/IIPM-D.WHAT IS MESO ECONOMICS?The term comes from "meso-" (which means "middle") and"economics", and is constructed in analogy with micro andmacro economics.Mesoeconomics is a neologism used to describe the studyof economic arrangements which are not based either onthe microeconomics of buying and selling and supply anddemand, nor on the macroeconomic reasoning of aggregatetotals of demand, but on the importance of under whatstructures these forces play out, and how to measure theseeffects. It dates from the 1980s as several economistsbegan questioning whether there would ever be a bridgebetween the two main economic paradigms in mainstreameconomics, without wanting to discard both paradigms infavor of some other basic methodology and paradigm.Mesoeconomics is not a generally recognized term, and ithas only a small number of adherents, though many ofthem[who?] are quite vocal in arguing for the necessity ofmesoeconomic reasoning, and it should be regarded as aterm specific to the authors that use it at the present time.
HARPALSINH A.RATHODIIPM-A’BAD. FB/2011-13/PGP/IIPM-D.• Phases of Mesoeconomics• Economic evolution is the process by which a novel generic ruleenters the economic systemSystems of meso rules carried by agents : micro-economics
HARPALSINH A.RATHODIIPM-A’BAD. FB/2011-13/PGP/IIPM-D.Changing population of rule actualizations : meso-economicsThe system of meso populations of rules : macro-economicsThe emergent rule and its growing population (meso trajectory)Three-Phase Meso TrajectoryPhase 1:Origination of a novel generic rule. The origination phase is thatwhere the rule enters into existence by entrepreneurial imaginationor consumerexperimentation.Phase 2:Adoption and adaptation of the rule in a population of carriers.The adoption phase is the communication of the rule to othercarriers, who then adopt the rule. The population of the rulechanges from one to many.
HARPALSINH A.RATHODIIPM-A’BAD. FB/2011-13/PGP/IIPM-D.Phase 3:Retention and maintenance of that rule in a population of carriers.Retention is where the carriers stabilize the rule for ongoing use.This is where behavioural routines and social institutions form.Meso 1 Origination• Meso 1 begins with micro. Agent as rule-maker, imagination andexperimentation in the face of uncertainty. The originator carries anewrule and thus has potential to develop new capabilities and engageinnew interactions.• Can occur on producer or consumer side.May involve new products, new consumers, newexpectations, new organizations, new interactions, new markets,new
HARPALSINH A.RATHODIIPM-A’BAD. FB/2011-13/PGP/IIPM-D.laws and new institutions, and perhaps all of these at once.• Macro effects of meso 1. A new monopoly as the first phase ofdecoordinationof existing meso-macro structure• De-coordination begins as connections between actualizationschangebecause of the presence of something new. A new product thatimpactson both complementary and substitute products will affect thefrequencyof both, and so disturb the deep and surface structure of macro.Meso 2 Adoption• Meso 2 is the path to full adoption and the emergence of a newrulepopulation(meso unit), beginning with those that contest the newmonopoly position while there is still much uncertainty, and endingin aprocess of normalization of behaviours about the new rule(uncertainty
HARPALSINH A.RATHODIIPM-A’BAD. FB/2011-13/PGP/IIPM-D.becomes risk).• Market growth and segmentation by the diffusion through aninitial market leading to the formation of related markets andsupportinstitutions.Meso 3 Retention• The retention of the rule and its population as an on-goingprocess. Achieved through maintenance in the micro andreplication inthe macro. In both cases refers to a meta-stable distribution ofnormalized or institutionalized activities• At the micro level of Meso 3, all extant carriers that will adopthaveadopted. Normalization to the new rule is underway and on-going.Theboundaries of carriers will stabilize about a new division of labour,structures knowledge, expectations and regional and industrialorganization. Meso 3 is the world of stable knowledge concepts,such
HARPALSINH A.RATHODIIPM-A’BAD. FB/2011-13/PGP/IIPM-D.as skill, routine, competence, capability, institution etc.• The time to Meso 3 depends upon how radical the rule is, on howlongit takes a society to adjust. This may take months, years, or longerExample of Meso economics:-Assume that we have a choice between two companies games. Oneis better than the other at a lower price. The other is by E.A.Sports.we worry that E.A. always have more fun, and therefore buy theE.A.Sports product because of the stability and well image of thecompany. In this way we have shown maso economics. Because wedidn’t buy which is actually good and we liked also.