Book Description

Curiously, economists, whose discipline has much to do with human well-being, have shied away from factoring the study of happiness into their work. Happiness, they might say, is an ''unscientific'' concept. This is the first book to establish empirically the link between happiness and economics--and between happiness and democracy. Two respected economists, Bruno S. Frey and Alois Stutzer, integrate insights and findings from psychology, where attempts to measure quality of life are well-documented, as well as from sociology and political science. They demonstrate how micro- and macro-economic conditions in the form of income, unemployment, and inflation affect happiness. The research is centered on Switzerland, whose varying degrees of direct democracy from one canton to another, all within a single economy, allow for political effects to be isolated from economic effects.

Not surprisingly, the authors confirm that unemployment and inflation nurture unhappiness. Their most striking revelation, however, is that the more developed the democratic institutions and the degree of local autonomy, the more satisfied people are with their lives. While such factors as rising income increase personal happiness only minimally, institutions that facilitate more individual involvement in politics (such as referendums) have a substantial effect. For countries such as the United States, where disillusionment with politics seems to be on the rise, such findings are especially significant. By applying econometrics to a real-world issue of general concern and yielding surprising results, Happiness and Economics promises to spark healthy debate over a wide range of the social sciences.

Reviews (1)

Anti globalists and classical economists, wake up!
Anti globalists, the serious ones, aim for a happier world. Classical economists see no place for happiness in economics. Both will improve the quality of their thinking by reading this book. It provides in just 200 pages an excellent overview of concepts in economics and their consequences on motivation and happiness, supported by statistical evidence. The presentation of the evidence can be improved by using more tables and less graphs, or graphs with the corresponding tables in an appendix. Even though references are given with the graphs it is impossible to find the original data in the Internet. It is also of interest to policy makers in business and government. For governments some well-founded recommendations are made concerning participation of the electorate, referenda, and decentralisation. For business the ideas about the link between intrinsic and extrinsic motivation are useful concepts. ... Read more

Book Description

Visionary activist and author Jeremy Rifkin exposes the real stakes of the new economy, delivering "the clearest summation yet of how the Internet is really changing our lives" (The Seattle Times).

Imagine waking up one day to find that virtually every activity you engage in outside your immediate family has become a "paid-for" experience.It's all part of a fundamental change taking place in the nature of business, contends Jeremy Rifkin. After several hundred years as the dominant organizing paradigm of civilization, the traditional market system is beginning to deconstruct. On the horizon looms the Age of Access, an era radically different from any we have known. ... Read more

Reviews (18)

PAYING FOR LIVING
How are we going to cope with the Internet era and the new cultural capitalism? At the beginning of the third millennium, the impact of new technologies is radically changing the structure of society and our very way of life. This highly debatable new book by Rifkin delineates the scenarios of the near future, where ideas and knowledge are the main generators of wealth, where for the first time in modern history owning chattels is considered a limitation to the capacity of adapting to change and any goods, services or actual knowledge must be purchased or hired. Here Rifkin explains why property will be replaced by "access on payment", why we will pay more and own less, why the gap between those connected to the "network" and those who aren't will always be wider, and why the economic giants possessing the keys to the "access" (it's just like the Force!) are destined to control the life of everyone. This work surely will become one of the most polemical issues of this year, with all its exploration of hyper-capitalism, the bottom question being: will it be possible to have a positive approach and achieve a positive dissemination of knowledge, comfort, and democracy via the "access to life"? And will there be any Jedis?

A great book, but read it carefully!
Make no mistake, I think that the Age of Access is an outstanding analysis of modern economy.

If you are a young professional and trying to develop a plan for professional development, or if you are a seasoned professional trying to come to terms with the mindset of the young, you should definitely read this book.

The biggest intellectual challenge that exists today for professionals is to understand the "new economy." I am always afraid that tidal waves of disruptive changes are right around the corner (or are already here) that could literally destroy my company or my career. Rifkin elaborates on several modern economic paradigms, and his analysis will help you anticipate and prepare for these fantastic changes.

I agree with some of the gloomy predictions like the destruction of our "Cultural Landscape." In a very vivid example, Rifkin mentions that there is a Dunkin' Donuts just a few yards away from the Trevi fountain in Rome. Even as a self described libertarian, I believe this kind of pollution of the "Cultural Landscape" should be stopped.

Rifkin's elaboration on the economic value of social trust is right on. Nevertheless his implication that trust is withering away in the US is not convincing.

My criticism is that although Rifkin has clearly diagnosed many of societies ills, he falls short of offering an action-based specific resolution. He seems to imply that "a handful of giant transnational life-science companies" represent the evil empire of today, nevertheless he does not say how to undo their influence.

Reading between the lines, it seems that Rifkin is implying that government ought to take control of certain things that are now considered private property. As an example, government would force Dunkin Donuts to move their restaurant to a less sacred location. History shows us that expanding the power of government can have disastrous results. I would have respected the author much more if he would provide a naked description of his action plan.

Good and Valuable Book
I liked the book very interesting description of the times we are living in. Helps understand the economic tendencies that are actually occurring around us. I enjoy reading it!

Access this book as soon as you can
Indeed an outstanding analysis of capitalist transitions. Very infomred study of how the mode of reproduction in capitalist society is redefining itself and who the agents of change are.
A must read for all students of politcal and social sciences; a strong recommednation for everyone who wants to step back and reflect on where we are heading and how things got rolling. The only short-coming I see, is that Rifkin strangely avoids building on marxist thought, hardly any references and it seems he tried to "skip" Marxism in an effort to stay popular amongst a largely US readership. Still, a most important book, any current day social researcher and political analyst should make this book a key reference point.

Spectacular analysis of today's hyper culture and commerce.
Your life is part of a larger drama. As you grow up you are presented with numerous options as to the character you will play. What attributes should your character have, what personality traits, what reputation, what should your character strive to be? Will you take on different personas at work, in social situations, in simulated environments? The choice is up to you, but your choices are presented by advertisers who seek to steer you in a particular direction and supply you with the props to act out your character of choice.

Once you acquire the physical props needed to reinforce your character (which have limited revenue potential for the companies supplying them), you need to compliment your props with experiences. Maybe you want to play a distinguished individual; one who lives in an exclusive golf community with others of similar status and means. Your character of choice has the newest cars, the latest gadgets, and adheres to the norms of others playing similar roles.

You own little if anything and consume most everything as a service - you lease your car, despite "owning your home" you have to pay for all kinds of memberships and fees to keep up the act. You script your social circles and cultural experiences. The majority of your relationships are based on monetary exchange and are pre planned. You are able to purchase cultural experiences based on what market research has determined you want to experience. You are presented with that which others have determined you want to see and will pay the most to experience. Your experiences don't reflect reality, as it exists in nature, but the "reality" which you want to, and think, should exist.

If you have enough financial resources you can rent the exact character you want to play, buy all the necessary props, and engage in all the appropriate cultural experiences. Everyone will treat you just the way you want to be treated. You'll be able to script your whole life. Will your relationships be built on trust, empathy, compassion and other genuine human emotions? Does any of this matter? Is there any difference between a life where everything is a paid for experience and one where it is not? Is this much ado about nothing? That's up to you to decide. Jeremy vividly describes how such scenarios may affect you.

Another fundamental issue in "The Age of Access" is the private ownership and control of public assets and natural resources. Should a private entity be allowed to claim exclusive ownership of the radio spectra over which all sorts of communications are broadcast? Should a biotech company be able to patent (and therefore have exclusive use) of a particular gene that has always existed in nature but has only recently been discovered and put to a particular use? Should companies be able to have patents on the very building blocks that make up life on Earth? Should they be able to patent things that make up your body? When it comes to property rights, where is the line between private property and the right of humanity to share in and access the natural wealth of the planet?

Monsanto, through the development of "Terminator seeds", has already shown how such patents and associated biological tampering may be used for the financial gain of a few to the detriment of the food supply of the world.

[Terminator seeds were developed by Monsanto as a way to claim intellectual property rights and revenue from farmers. The seeds are bio-engineered to be sterile so that instead of simply harvesting seeds at the end of one crop season to be used for the next, the farmer would have no choice but to ante up to Monsanto for seeds for next years crop.]

The parallel is made between cultural diversity and biodiversity. As the world's natural resources are depleted, can we continue our current lifestyles, our massive energy consumption? Many other works contend the answer is no. Rifkin compares biodiversity to cultural diversity. Can capital markets continue to operate if the very social fabric and trust on which they are built is transformed into continuum of paid for experiences?

"The Age of Access" is brilliant. It raises issues that will become more and more important as we move forward into the age of "hyper-capitalism". Will it matter if your life becomes a series of subscriptions and paid for experiences? Should any private entity be able to claim control over things like genes or radio spectra or should they remain in the public domain for all to use? Is it in anyone's interest for corporations like McDonalds's, Dunkin Doughnuts, Starbucks, and others to steamroll local cultures and business outside of the US in the pursuit of profit? Rifkin presents scenarios that address these and many other questions. You may or may not agree with issues and perspectives in the book but its one book you can't afford to pass up. ... Read more

Book Description

The Classical Economists Revisited conveys the extent, diversity, and richness of the literature of economics produced in the period extending from David Hume's Essays of 1752 to the final contributions of Fawcett and Cairnes in the 1870s. D. P. O'Brien thoroughly updates, rewrites, and expands the vastly influential work he first published in 1975, The Classical Economists. In particular, he sets out to make clear the shaping of a comprehensive vision of the working of an open economy, building on the great work of Adam Smith in Wealth of Nations, a development that was substantially affected by the contributions of David Ricardo. He shows that the Classical literature was in fact the work of a host of thinkers from a wide range of backgrounds.

Covering the intellectual roots of the Classical literature and its methodological approaches, and the developed theories of value, distribution, money, trade, population, economic growth, and public finance, and examining the Classical attitudes toward a rich variety of policy issues, The Classical Economists Revisited considers not only the achievements of the Classical writers but also their legacy to the later development of economics.

A seminal contribution to the field, this book will be treasured for many years to come by economists, historians of economics, instructors and their students, and anyone interested in the sweeping breadth and enduring influence of the classical economists.

... Read more

Book Description

Kenichi Ohame looks ahead to the future of business in the age of the Internet and sees a rapidly changing landscape -- one to which we must adapt or face the consequences. Ohame unveils this new economy's four basic forces and shows how a dramatic and volatile battleground is forming between companies and the countries that try to regulate them.

Just as The Borderless World foresaw a globally interlinked economy, The Invisible Continent maps out the coming technological revolutions and the impact they will have on the businesses around the world. A must read for anyone seeking to attain and keep a competitive advantage in today's markets, The Invisible Continent is a "timely, well-written, and well-organized book" (Library Journal).

Reviews (15)

THIS IS A WORK OF AWE-INSPIRING BUSINESS GENIUS.
As the author of "Start & Run a Profitable Exporting Business," I had the great honor of receiving Dr. Ohmae's endorsement of my book. I have been an admirer of his since starting a global marketing, consulting and web content providing business in 1985. His first book, "The Borderless World," not only inspired me to focus my entire professional career on global trade, but also changed forever the way in which managers throughout the world viewed their business.

Now, looking forward with great anticipation to this new book, "The Invisible Continent: Four Strategic Imperatives of the New Economy," I wondered how Dr. Ohmae could live up to his pioneering work of the early 80's on "globalism" -- a word he coined that is now in everyday use -- and give us an equally ground-breaking text for the 21st century. I'm delighted to report that I read his book and it is Dr. Ohmae's best work ever. He remains a foremost architect of the future of business on (as he describes it) our cyber-enabled continent.

This is a work of awe-inspiring business genius, offering a boundless wealth of ideas about how to thrive in our new economy. The enormity of Dr. Ohmae's intellect and the clarity of focus with which he seamlessly assembles complex ideas about our "continent without land" make this a text that is at once profound, sophisticated and marvelously easy to understand. Here's a characteristic comment, at once colorful and thought-provoking: "The Internet has made it much easier to become simultaneously global and newly born." Dr. Ohmae compels us to think about the conditions of world business not as they are, but as they will be -- much faster than you think -- and what to do about it. I put down the book asking myself, "What just happened here?" -- it was that provocative.

If you want a forecast of the future of traditional and e-business NOW, then you should secure your copy of "The Invisible Continent: Four Strategic Imperatives of the New Economy" TODAY.

A must read to fully enter the "new economy" continent
Make sure to read this book to explore and better integrate this "invisible continent", which is wrapped around all of us.
Kenichi Ohmae is starting his book with following words: "... sudden changes can often be traced to the discovery of new lands-the opening up of contact with a new geographic region with a different way of life. As explorers and settlers have come to new continents, they have shifted their ways of life-not just for themselves, but also for the old worlds they left behind."
"During the past fifteen years... a kind of new continent, existing only in our collective minds, has been discovered-a continent without land" where "people with courage and curiosity have discovered new ways of life."
The author calls this continent " the invisible continent... as palpable and vital, as tangible and solid, as if you could find it on a map." But this metaphor of an "invisible continent" can also be used for the people who do not want to see the changes, even more nowadays after the recent explosion of the "new economy" bubble.
Looking through the glasses of the Kenichi Ohmae becomes surely useful to understand and act in the world we are living in.
Four dimensions are characterising this "invisible continent". They are the visible dimension, the inevitable physical part to deliver goods and services, the borderless dimension, global worldwide markets and operations, the cyber dimension-instant communication and exchanges, the dimension of high multiples allowing huge financial leverage.
The most successful companies in the "new economy" are playing on these four dimensions interactively to thrive at never seen before speed, when in conventional management schools these four dimensions are taught separately, when taught.
The appearance of this new continent, some 18 years ago, was linked to the setting up of platforms, open standards tacitly shared between "new economy" pioneers and consumers, and to the growing role of arbitrage in an increased information fluidity environment to maintain prices down and quality up. If Microsoft Windows is an important platform to communicate in the cyber dimension, English language and dollar currency are two other ones in the borderless dimension, explaining partly the predominance of USA on this new continent. When arbitrage is creating opportunities it creates also uncertainty for long-term commitment and a more unstable environment.
In the new continent the power is shifting from the producers to the consumers with important impact on economical and political decisions.
This is the point where the old and the new have to find answers to questions asked by the introduction in our lives of this new continent.
Kenichi Ohmae's book is becoming our lighthouse in this new territory by presenting the strategies followed by the "new economy" companies but also by exploring the role of politicians to facilitate integration in this "new economy" environment.
Many developed illustrated ideas are real value as: targeting markets with enough consumer power and discretionary income, deregulating crucial economical activities, developing regional entities, setting up the right "new economy" infrastructures etc.
Here are the basics on micro and macro economy to enter in the 21st century.
Reading this book changed my life in making clear the invisible of this new continent. I'm convinced that the Kenichi Ohmae's contribution will be better recognised in coming years and I keep his book at hand to make sure to extract all the richness it contains.

A fine interpretation of recent economic history
One of what I consider the enlightening books that allow you to gain a new perspective on a seemingly complex subject. In one go the author attempts to explain how recent economic, technological, commercial and societal developments have conspired to create a new world order. Decision-makers would do well to use the lessons of this book to analyze their decisions. I sometimes feel that the people making the decisions, universally, are under-educated and naive and would not even consider the wider ramifications of their decisions.

My only complaint is that Mr. Ohmae tends to ramble on topics that may well be more concise. He also pauses every once in a while to complain against the egregious faults of the Japanese government. I don't blame him but it would be better if he treated it in a seperate book on the subject.

A book providing wider horizon and longer vision
It talks about how 3 new forces - cyber, economic multiples, globalisation - are reshaping the world's future. Not only in business or economic, bu also in political and social spheres.

These 3 forces are not really new and there shall be lot of literature talking about them. Strength of this book is to look at them from a macro perspective; and they interact (together with "real" economy) and affect well-being of mankind. It is not a descriptive book. In fact, the author shares his vision of how we shall deal with these changes - as an individual, a company, a country, a government, and everyone of us as an international citizen.

Author exercises powerful imagination of what will happen in future, e.g. a new cold war using the 3 forces. This may seem wild but certainly not empty talking. You may not take this seriously but it can enhance your feel about many future possibilities.

Unlike most Japanese, author has his independent opinions and express them critically. It is always sensitive for a foreigner to talk about other countries - e.g. Americans blocking Japan's recovery, Koreans maintaining developing countries mindset, China and Russia disintegration - let us be open minded and respect free speech.

A work by one of the strategists shaping our future
We need to pay heed to Dr. Ohmae ideas is this work, because his track record is pretty sound. His four strategic imperatives will drive the economy of the future and make this world a better place for everyone to live. ... Read more

Book Description

The quality of ecosystems is affected by the actions of different stakeholders who use them in a variety of ways. In order to understand this complex relationship between humans and nature, it is vital to understand the complexity of the interacting agents. The authors in this book attempt to do this by applying multi-agent systems to the problems of ecosystem management.

The multi-agent approach to ecosystem management is a relatively new and rapidly developing field which takes a formal computational approach towards the interaction of humans with their environment. The authors highlight some of the promising new methodologies which are emerging in the field from disciplines such as computer science and computational social science. They move on to address a number of important topics including diffusion processes, common-pool resources, land use change and the participatory use of models, in an attempt to solve contemporary management issues. They clearly demonstrate the potential utility of multi-agent systems in the context of theoretical problems and practical case studies.

This book provides a state-of-the-art review of the theory and application of multi-agent systems for ecosystem management. It will prove indispensable for ecological economists, natural resource and social scientists, and policymakers. It will also appeal to students and scholars who are interested in modeling the human dimensions of global environmental change. ... Read more

Reviews (1)

A scholarly, college-level collection of learned articles
Compiled and edited by Marco A. Janssen (Associate Research Scientist, Center for the Study of Institutions, Population, and Environmental Change, Indian University - Bloomington), Complexity And Ecosystem Management: The Theory and Practice Of Multi-Agent Systems is a scholarly, college-level collection of learned articles and essays from an extensive roster of experts focusing on a "multi-agent" approach to the complex field of ecosystem management. Theory, application, graphical and mathematical models fill the pages of this solid, scientific, scholarly resource which is a very highly recommended, core addition to professional, governmental, and academic Environmental Studies reference collections. ... Read more

Book Description

Saving Capitalism from the Capitalists is a groundbreaking book that will radically change our understanding of the capitalist system, particularly the role of financial markets. They are the catalyst for inspiring human ingenuity and spreading prosperity. The perception of many, especially in the wake of never-ending corporate scandals, is that financial markets are parasitic institutions that feed off the blood, sweat, and tears of the rest of us. The reality is far different.

This book breaks free of traditional ideological arguments of the Right and Left and points to a new way of understanding and spreading the extraordinary wealth-generating capabilities of capitalism.

Reviews (7)

Simply wow
.
Too good.

A must read by every politician and a business-man.

Financial/Capital markets could be used positively to eradicatepoverty.

I began appreciating the laws related to property rights more than ever.

It also talks about how and why we need to save capitalism from the hands of people who mis-use & thwart the capitalistic processes after they reach a certain level BY UTILIZING THE CAPITALISTIC PROCESSES ONLY.

A very good sequel to this book is "The new financial capitalists" by George Baker.

A must read
this is an eclectic and well written book. It debunks the popular notion that capitalism is just a scam to make the rich even richer at the expense of the poor. It is true that capitalism can in fact be used by white glove thiefs to "redistribute" joe sixpack's savings into their pockets, but that is not an inherent feature of the capitalistic system, as the authors explain.

What I like about Zingales and Rajan is that when confronted upon corporate malfeasance they don't change the topic to the excessive penalization of risk taking because crooked CEOs and Investment Bankers are not risk-takers.

Overall it is entertaining and persuasive.

I find these Chicago school economists closer to the Austrian tradition than their colleagues maybe that's why I find them so persuasive. They don't throw all capitalists into the same bag they distinguish between entrepreneurs (in the Austrian sense of the word) and rent-seeking "capitalists". Between self-made billionaires and billionaires by inheritance. While entrepreneurs must be defended with tooth and nail to preserve the capitalistic system, the others must be thrown to competition hell.

There are a few inaccuracies, for example up-to-date Forbes billionaire data by countries is available over the internet; and a few paragraphs must have been included out of "respect" for their intellectual tradition and not because of their relevance to their argument, for example the Efficient Markets Theory. I do not think markets have to be "efficient" (in the academic sense that prices have to follow some mathematical/fundamental model) to be preferred to any other institutional arrangement.

Some other paragraphs come across as exaggerating/overpromoting/overselling the influence of certain academics on real world institutions. Maybe they reflect some insecurity?

But the essential ideas, and the reasoning, more empirical and pragmatic than ideologic/axiomatic, make this book an instant classic. It is on the same level as Hernando de Soto's Mistery of Capital and Hayek's Road to Serfdom.

a clear-headed appraisal of the market
An unsentimental appraisal of the benefits of a laissez-faire economy. Rajan and Zingales obviously admire the market in the way a mechanic would admire a well-designed engine and suggest ways it could be "tweaked" for maximum performance. That includes safeguarding the market mechanism from the very people and industries it has rewarded, and whose immediate interests no longer coincide with the free flow of goods and capital.
The authors provide ample evidence of the depredations of crony capitalism, and chronicle the many ways in which powerful industries in Europe, Asia and North America have sought -- and secured -- harmful trade barriers and capital restrictions over the past century.
A remarkably clear-headed book, free of the usual libertarian cant or other ideological baggage that plagues so many books on this topic.

Good Overall Book on Finance and Free Markets
An excellent introduction and review of free markets and how, through finance, they are able to provide the best allocation of resources for all.Even better was the examination of how free markets are thwarted by interest groups who seek to carve out protected enclaves from competition.The book is not a right wing fantasy where gov't is always evil, in fact it acknowledges that the structure of gov't is highly important because interest groups will attempt to utilize any form of gov't to their own ends.In such a situation, government is all the more important because the right type of structure can channel such pressure away from market destroying measures.

Excellent book, worth reading for the novice to the expert
It is refreshing to see experts explain cutting edge ideas in a way that is accessible to all. This book explains why the free markets are important to all of us and why we cannot take them for granted. It also spells out in convincing fashion why the free markets are often at risk from those who at first might be considered their strongest supporters.
It is important for the common person to understand the forces at work and their own self interest so that they use their political force towards their own and the greater good. It is also very usefull for policy makers in designing systems that are not only more effecient but that are more resilient to subversion and grounded in stronger political support.
As an investment professional, this book is interesting as it points to the need to move away from the paradigm of free markets and unbridled competition to generate above average profits. The extent and liklihood of participants actually subverting the free market process and competition should be a part of the analysis in projecting long term profitability of sectors and companies. ... Read more

Book Description

This is the first cross-over book in the history of science written by an historian of economics, combining a number of disciplinary and stylistic orientations. In it Philip Mirowshki shows how what is conventionally thought to be "history of technology" can be integrated with the history of economic ideas. His analysis combines Cold War history with the history of the postwar economics profession in America and later elsewhere, revealing that the Pax Americana had much to do with the content of such abstruse and formal doctrines such as linear programming and game theory. He links the literature on "cyborg science" found in science studies to economics, an element missing in the literature to date. Mirowski further calls into question the idea that economics has been immune to postmodern currents found in the larger culture, arguing that neoclassical economics has surreptitiously participated in the desconstruction of the integral "Self." Finally, he argues for a different style of economics, an alliance of computational and institutional themes, and challenges the widespread impression that there is nothing else besides American neoclassical economic theory left standing after the demise of Marxism.Philip Mirowski is Carl Koch Professor of Economics and the History and Philosophy of Science, University of Notre Dame. He teaches in both the economics and science studies communities and has written frequently for academic journals. He is also the author of More Heat than Light (Cambridge, 1992) and editor of Natural Images in Economics (Cambridge, 1994) and Science Bought and Sold (University of Chicago, 2001). ... Read more

Reviews (3)

A weak case
Recognizing apprehension about current developments in technology and the "closed worlds" of the "brave new world of electronic surveillance and control centers", and the presence of anti-cheerleader/antagonists towards artificial intelligence and its supposed tendency to reduce the complexity of humanity to "a very small part", the author of this book attempts to step beyond this and give an historical overview of the influence of what might be called (and these are words of this reviewer), a "cyborg epistemology" in the field of economics. The evidence cited is on the whole anecdotal, and what results is a view of economics that could more properly be called "deterministic". If economics is to be labeled "cyborg science", then this labeling might have many different meanings depending on the attitudes and background of the reader. For this reviewer, the decision to read this book was based on the belief that it might shed some light on how intelligent machines are being used either to develop new economic theories or to understand the vast amounts of empirical economic data currently available.
Luckily though the author does not intend to give the reader another neo-Luddite treatise on the perils of technology. He lets the reader know early on in the book that this is not his intent, in spite of the first few pages of the book, which might lead a reader to think otherwise. The author describes "cyborg science" as a description, taken by historians and sociologists of science, of the manner in which science has been transformed as an institution since World War II. According to the author, this designation is due to Donna Haraway, a contemporary sociologist of science, and applied by many other researchers whom he lists. In order to be fair to the author's use of the term as delineated by these researchers, one would need to study their works. This reviewer has not read any of these, but concentrated instead on the arguments put forward by the author himself, independent of any prior analysis or works of others he depends on. And it is the opinion of this reviewer that although the author might have respected the goals and opinions of all of these researchers in their concept of "cyborg science", it does not conform to the concept of "cyborg" as viewed (in general) in artificial intelligence. The concept of cyborg as an "automaton" is one that the author had in mind, but thinking of machines as automatons takes place in only a few small circles in the field of artificial intelligence. Further, the "attack of the cyborgs", which labels one section of the book, is a theme of many Hollywood movies, but it is an exaggerated and even comical view of artificial intelligence, and does not deserve inclusion in any serious study of the history of the influence of artificial intelligence on economic theory.
The author begins his "cyborg genealogy" with Charles Babbage and quickly moves on to von Neumann, Claude Shannon and Norbert Wiener, Alan Turing, the main instigators (consciously or not) to the "cyborg science" of post-war economics. Throughout the book one can see clearly how the field of operations research was influenced by these individuals, and how ideas from physics, in particular from thermodynamics and statistical physics, found their way into economics. Babbage is described as someone who saw no reason why the human mental faculties could not be "economized" with the assistance of machinery. His portent of the future is certainly remarkable, given the trend in the last decade of low-level machine intelligence replacing hundreds of tasks typically done by humans. The "Second Industrial Revolution" spoken of by Norbert Wiener, and currently advertised with gusto by the new technophilic generation of inventor/visionary Ray Kurzweil, is fully in place, and shows every indication of having extreme social consequences.
One must not however exaggerate the influence of well-known individuals in science and technology in bringing out true changes in society. The ideas of these individuals are widely quoted, but their efficacy is usually tested by many unknown individuals, whose sole interest is in the applicability and marketability of these ideas. The author spends too much time elaborating on the contributions of a small collection of people, ignoring those who were (causally) responsible for the rise of the information age and machine intelligence. In addition, the anecdotal comments attributed to Babbage, von Neumann, Shannon, Turing, and Weiner, that the author believes proves their view of economics as a "cyborg science" does not mean it has actually become one. The author does not propose any criteria, independent of these anecdotes, for establishing his case that post-war economic theory should be characterized as such. These criteria would have to involve the use of statistical sampling and tests, which is completely absent in this book. A much stronger, and more interesting case could be made if the author did not shy away from these techniques.
So no, this book is not one of the reactionary anti-technology polemics that are beginning to proliferate the bookstores. But it is clear when reading the book that the author is expressing anxiety about the current state of technology and he makes a deliberate attempt in the last pages of the book to engage in philosophical value judgments. The "raw emotions" he says he felt in the development of his ideas compel him to make moral commentary on the state of economic theory. He does not see sinister plots behind military funding of economics, but he does hold the researchers obtaining this funding accountable for their results, and we should not believe them when they say they were working independently and without outside interference or pressure. The author though does show some traces of the post-hermeneutic criticism that has in large measure dominated the humanities. His worries of viewing markets as machines are in the opinion of this reviewer unjustified if one is to go solely by the content of the book.
The (thinking) machines of today are making markets, but not controlling them.

Note added later
The suggestion made in the last chapter is to try to identify an automaton that describes a particular market. This program will not work because of lack of uniqueness, as is explained by the work on generating partitions in nonlinear dynamics. Given any sttistical distribution, one can find infinitely-many different automata that can be programmed to generate that distribution. Mirowski's suggestion cannot be carried out in any meaningful sense for that reason. In finance theory we have recently (with Gunaratne) deduced a particular stochastic dynamics from market histograms, and there we also have faced nonuniqueness in identifying the underlying dynamics. The bigger and more immediate problem is to find nonfinancial economic data that are accurate enough to draw any meaningful conclusion from the purely empirical histograms.

Now for the irritation. I find it academically irresponsible in this day and age to equate Newtonian mechanics with 'equilibrium'. From the beginning, Newtonian mechanics was about periodic and quasiperiodic orbits. The orbits that were studied prior to 1900 typically have neutral equilibria. To be 'in equilibrium' in such a case, the earth (for example) would have to sit at the center of the sun. Poincare' discovered chaos in Hamiltonian systems around 1900. In a chaotic system all equilibria are unstable but the orbits are bounded. See Ivars Peterson's 'Newton's Clock' for a description of the history of the discovery of chaos in the solar system. Toffoli and Fredkin discovered Turing machine-level complexity in a Newtonian system (constructed of billiard balls) around 1983, and Chris Moore (now at the Santa Fe Institite) showed around 1993 that certain area preserving maps are equivalent to Turing machines. In other words, Newtonian systems can exhibit not merely chaos but maximum complexity as well. The misidentification of Newtonian mechanics with 'equilibrium' or simple mechanics should now be laid to rest once and for all. It would be more accurate to say that the economists borrowed the idea of static equilibrium from Archimedes. Also, take note please that every digital computer is a Newtonian electromechanical system.

Undecidable econ vs. Perfect Rationality
I've read about 250 pages and can recommend that anyone with an interest in economics and finance should read this fantastic book. The basis for the text are the contributions of Shannon, Turing, von Neumann, Wiener, Koopmans, Marshak, and Arrow. Mirowski tells us the main story of the interaction of the Cowles Commission with RAND, which Bernstein does not at all hint at in his Capital Ideas. Having praised the book, I will now concentrate mainly on a few points of disagreement. Undecidability should not be confused with noise in stochastic processes. Systems at the transition to chaos can define automata that can perform simple arithmetic. That 'cyborg' has it's origin in the physical sciences seems farfetched (the connection between Turing and physics is supposed to be via Maxwell's demon, but was Turing really motivated by the idea of Maxwell's demon?). Nonlinear dynamics and fractals ('chaos' and fractals) certainly did not evolve from cybernetics or 'system theory' ('system theory' was based at best on an awareness of equilibria and limit cycles of differential equations, and made vague, unjustifiable allusions to holism). Cybernetics cannot really be seen as the midwife of what is now loosely called 'complexity' either, rather, that (still undefined) field grew out of nonlinear dynamics, neural networks, computability theory and molecular biology. Mirowski is right that many scientists confuse simulations with experiment and observations. I have argued against this confusion in papers and books.

Mirowski paints an intriguing picture of (Gödel-influenced) von Neumann, RAND, researchers with awareness of information and computability limitations leading to agent-based modelling with some respect for empiricism on the one hand, and then, on the other hand, Arrow, the Cowles Commission and their later rejection of empirics, instead with emphasis on Bourbaki-style existence proofs leading to infinte demands on information requirements on Walrasian agents and noncomputable equilibria. We now know that agent-based modelling can easily lead to fat-tailed price distributions (as observed empirically), whereas in contrast the origin of the systematic head-in the-sand philosophy of the neo-classical economic theorists is made quite clear in this work. One can summarize the neo-clasical economic agent as follows: his dynamics are trivial (equilibrium, including Nash equilibria) but the information demands made on him to interact with other agents and locate an equilibrium point are impossible (noncomputable). Moreover, we now know that financial market statistics point toward the instability of Adam Smith's hand, so that the notion of dynamic equilibrium is complelety uninteresting so far as understanding markets is concerned. ... Read more

Book Description

If you think it’s getting harder to both make a living and make a life, economist and former secretary of labor Robert Reich agrees with you. Americans may be earning more than ever before, but we’re paying a steep price: we’re working longer, seeing our families less, and our communities are fragmenting.

With the clarity and insight that are his hallmarks, Reich delineates what success has come to mean in our time. He demonstrates that although we have more choices as consumers, and investors, the choices themselves are undermining the rest of our lives.It is getting harder for people to be confident of what they will be earning next year, or even next month. At the same time, our society is splitting into socially stratified enclaves--the wealthier walled off and gated, the poorer isolated and ignored. Although the trends he discusses are powerful, they are not irreversible, and Reich makes provocative suggestions for how we might create a more balanced society and more satisfying lives. Some of his ideas may surprise you; all should spark a healthy–and essential–national debate.
... Read more

Reviews (9)

Interesting Commentary On Our Changing Workplace
Although the title is overly ambitious, The Future of Success is an interesting commentary on our changing workplace. The author, Robert Reich, a Brandeis University professor, was the Secretary of Labor during President Clinton's first term. Consumed by work and neglecting his family, Reich decided that the toll was too great and left his cabinet position to return to academia and write this book.

Reich's work is important because he explains the drivers of our new economy with its great consumer deals, endless workweeks and vanishing job security. In this new world, rewards are given for results, not seniority within the company. We can conclude therefore, that since teams are typically formed to achieve specific results, they will continue to be an important organizational structure in the new economy. Increased competition is driving most businesses to focus on results. This philosophy favors a results-based organization structure in which teams are the basic building block.

Although the reader expects Reich to end this book with stunning insight on balancing the vast benefits of the new economy with its requirement of personal sacrifice, the author provides no specific recommendations. Instead, the disappointing final chapter provides some vague recommendations for increased dialogue and improved public policy. Nevertheless, the book's compelling content makes up for its tepid epilogue.

Reich's background gives him unique qualifications to describe the driving factors behind the new workplace. I recommend that you put this on your list.

A good book on the economics behind the life/work balance.
Reich explains very well all the economic trends that make our society increasingly consumer friendly. Thanks to competition you can get more products and services at a cheaper price than you ever could. The dark side of this 24/7 consumer society, is that it is also a ruthless 24/7 workaholic society. The U.S. is a wonderful place to be rich (ideally financially independent). But, it is an increasingly competitive place to make a living. In other words, the U.S. is a consumer's paradise, but often a supplier's hell.

Reich develops great metaphors to describe working people in few words. One of them is the Geeks and the Shrinks. The Geeks are the ones who know how to gather and manipulate data so as to develop new products and services. The Shrinks are the ones who research and understand what consumers really want through market research, focus groups, and other tools. The Geeks and Shrinks are like the Yin and Yang of this new business world. They both need each other to create new markets of products and services.

Dissects the modern Work/Life balance problem
This was a great, insightful, enjoyable, well-written book. It clearly dissects the problem of why it's so hard to achieve a suitable work/life balance today, and clearly describes some underlying causes. For me, it certainly lived up to the praise it has gotten.

In short, Reich's central idea is this: as consumers, we love the terrific products and deals we're getting in today's marketplace as a result of increased competition. However, the dark site of this is that we must work longer hours as employees and be more innovative to ensure our companies outpace the competition. These time pressures are fragmenting our personal lives as we reduce the time we spend with friends, family and community. Reich has many interesting insights and observations beyond this overall theme as well. Overall, I recommend this book -- reading it was time well spent.

An insightful look into our society
I picked up this book in the airport and found it to be a fascinating discussion of how our society has changed over time as it relates to work and home. If you are a Conservative, don't let Reich's left-leaning policy stances deter you from reading this book. His insights are informative no matter what your political leaning. What I've appreciated about this book Mr. Reich's ability to so clearly explain his observations. It makes the subject of economics, demographics, and trends very approachable and easily understandable - even for those without a PH.D.

The major themes, with some revealing excerpts, are:
Our economy is transitioning from one centered on mass-production that favored sellers to a personalized economy favoring the buyer.
- As new technologies give all buyers wider choice and easier access to something better, they render all sellers less secure. Most people would rather feel secure than insecure, but insecurity is not bad for an economy. It spurs innovation, the other major principle of the new economy. (pg 27)
- As noted, buyers are less constrained by production scale, distance, or information. With access to a widening choice of products and services coming from almost anywhere on the globe, and armed with better comparative data about price and quality, buyers can more easily switch to something better. The easier it is for buyers to switch to a better deal, the harder sellers have to work to attract them and to keep them. (pg 31)

There are two emerging types of workers: geeks and shrinks.
-The geeks draws on his endless fascination with a medium - a technology, a science, a visual art, a literacy form, a system of symbols, with its own rules and internal logic. The shrink, by contrast, draws on her fascination with people - their aspirations and fears, their yearnings and needs, their unexamined assumptions. The shrink is empathic where the geek is analytic. The geek understands it - the possibilities for novelty within a given medium. The shrink understands them - what they could possibly want or need. (pg 57)

As families work more, the scarce resource becomes time and attention. Thus there is a trend toward "outsourcing" those tasks that were once conducted by family members:
- Families are making these calculations all the time - perhaps not quite as systematically, but surely with some feel for relative costs and benefits. And as both men and women work harder for pay, they're subcontracting out more of what were once family responsibilities. By 1996, spending on take-out meals from restaurants exceeded spending on meals consumers at restaurants. By 1997, spending on take-out meals and restaurants exceeded spending on groceries. And even the supermarkets are offering more prepared food: roasted chickens, soups, grilled salmon, cooked vegetables, casseroles. If you wish, you can order your meals or your groceries by phone, fax, or Internet. (pg 171)

-When I had a birthday as a young boy, my mother baked me a cake using flour, sugar, and other basic ingredients. By the time my kid sister had her first birthday, my mother had relented to the extend of using cake mix. Then came the big squeeze. By the time my own children were young and had birthdays, my wife or I ordered ready-made cakes with customized messages on top. Now, it's not unusual for parents to subcontract the entire party to restaurants that specialize in children's birthday. These restaurants supply not only the cake but also the balloons, party favors, and games - plus the all-important supervision and cleanup. Pay extra and they get a clown, and even someone to take the video. Meanwhile, Mom or Dad can duck out to check for messages. (pg 172).

Why work is getting harder, and life more lonely. . .
Reich (personal bio covered by other reviewers) covers
some of the mega-trends that are affecting our lives.

The book follows this train of thought, if only roughly.

1) Technology and globalization is breaking down barriers for competition. With so many suppliers, buyers have more choice. There are better deals everywhere and switching costs are going down. You can change (your house, job, lifestyle) easier than ever before.
- Every year 17% of American¡¯s change residences, and 20% of them change jobs.

2) It is a buyers market and sellers are forced to innovate. Everything must be better, faster, and cheaper. The innovators are increasingly independent, and networked free agents (rather than a vertically-integrated conglomerate). These free agents seek market visibility by associating with large recognized brand portals: Disney, Dell, Harvard, and AOL.
- 90% of the 7,000 entertainment firms in Los Angeles have fewer than 10 employees.

3) Loyalty? Companies are constantly trying to cut costs and looking for cheaper suppliers (and employees). "The underlying cause isn¡¯t a change in the American character. It is to be found in the increasing ease by which buyers and investors can get better deals, and the competitive pressure this imposes on all enterprises. As the pressure intensifies, institutional bonds are loosening.¡± (page 71)

4) The nature of work has changed. There is more emphasis on the individual; they must provided for themselves, and constantly define their value. It is an opportunity, but also a great source of insecurity.
The gap in wealth is increasing.
- In the US, the top 1% of people hold 18% of the wealth.
- CEO pay (as a % of typical worker¡¯s salary) has risen from 40x (1980) to 85x (1990) to 419x (2000)

5) Americans are working longer hours. The opportunity cost of not work is very high: people are compelled to work for that marginal income. The free agent culture: People take their work home with them
- Americans work 350 hours a year more than Japanese and Europeans
- 30% of families are supported by single parents

6) As free agents, we sell ourselves constantly. (Not just when applying for a job) ¡°Individuals now blaze their own career paths by making reputations in their fields, not in their organizations.¡± (page 143)

7) Families are shrinking, as both women and men feel compelled to work more. Many of the functions for the family are being outsourced: meals, childcare, shopping.
- The percentage of unmarried people with no children is 32% (1998)
- In Massachusetts, more babies are born to women over thirty (than under thirty)
- Spending on take-out & restaurants exceeds the spending on groceries.

8) Although technology is making our lives easier, more efficient, we are very alone. As a result, we are paying for attention: spas, clubs, counseling, childcare, and brokerage. Companies are segmenting their markets by their customers¡¯ ability to pay for service (or attention). Invariably, this trend will continue as more people work longer hours and spend less time at home and with their families.

9) Communities are becoming commodities. People are more mobile. We choose our location, neighbors and lifestyles. Friendships start and end easier. We choose the communities that offer the best return on investment: lifestyle, schools, and real estate value. Society is becoming more segregated as people bargain for something better; no one wants to subsidize anyone else.

10) Leadership is about attracting and keeping talent; governance is salesmanship (section title pg. 209).

Finally, Reich discusses the choices we must make in light of the world we live in. Overall, it is an insightful and organized view of the hectic life we live. ... Read more

Book Description

"What do you want?" is a constant query put to economic and globalization activists decrying current poverty, alienation and degradation. In this highly praised new work, destined to attract worldwide attention and support, Michael Albert provides an answer: Participatory Economics, "Parecon" for short—a new economy, an alternative to capitalism, built on familiar values including solidarity, equity, diversity and people democratically controlling their own lives, but utilizing original institutions fully described and defended in the book. ... Read more

Reviews (11)

Clear alternative to capitalism
This is the clearest exposition yet of participatory economics,
an alternative to captitalism, market socialism, and
Soviet-style central planning. The participatory economics
model was developed by Michael Albert in collaboration
with Robin Hahnel. I would recommend reading this book
with Hahnel's recent book, The ABCs of Political Economy,
which provides a more in-depth critique of mainstream
pro-market economics.

Instead of allocation by how much
power or bargaining clout you have -- which is how markets
really work (forget about mainstream propaganda
about markets as "efficiency machines"!) --
participatory economics is based on the idea of
self-management -- each is to have a say over economic
decisions in proportion to how much they are impacted.

Governance by corporations and the state is replaced
by democratic worker and neighborhood organizations.
The market is replaced by participatory planning -- the
creation of a comprehensive agenda for production by
the direct input of requests
for work and consumption outcomes by individuals and
groups, and a back and forth process of negotiation.
Intead of elite planners, as in Soviet-style central
planning, we all would craft the economic plan.

In the process of individuals and groups evaluating
possible outcomes, the planning system takes account
of consumer and worker preferences, thus giving measures
of social benefits and costs. As each production group
approximates to the average social cost/benefit, waste
is avoided. The overall structure is designed to support
the tendencies in human nature towards solidarity and
cooperation, as opposed to the market, which imposes
a regime where "nice guys finish last."

Parecon has a particularly elegant solution to the
problem of under-production of collective goods,
and over-production of negative external effects,
like pollution, which are widespread and destructive
effects of markets.

Little is said about how such an economic framework
would come about. Albert thinks that having a good
vision of where we want to go is important to motivating
the kinds of mass movements that would be needed to
bring about such a change.

Economies Affect People
When was the last time you had a voice regarding what's being produced in the economy? And how much of an influence did you have over the cost of your last doctor visit? Finally, does the market care about the homeless or the environment, or does it only care about profits, leaving the former two concerns for you, the taxpayer, to deal with (i.e., market discipline)? People should ask themselves questions such as these before reading Michael Albert's Parecon: Life After Capitalism.

In a nutshell, this book offers an alternative economic vision that could fulfill human potentials and needs in participatory ways. Parecon's guiding values are equity, diversity, solidarity, and participatory self-management.

Clearly then, this book requires critical thinking on the part of the reader. Prepare to be challenged at first, as Albert analyzes the inherent weaknesses of both capitalist and the so-called "socialist" economies (e.g., former USSR), and how they both subvert human values to a considerable extent. In fact, he demonstrates conclusively how capitalism destroys equity, limits choices, wrecks solidarity, and smashes worker self-management. And because capitalism remunerates for bargaining power and has corporate divisions of labor, these ill-effects will be inevitable under capitalism, according to Albert. Therefore, Albert dismisses capitalism when thinking about a desirable economic vision.

Albert picks apart the so-called "socialist" economies in the same way. He shows the reader that such economies are clearly totalitarian, as they typically have state ownership and central planning; despite some marginal democratic forms on the periphery. Further, he argues that such systems create a new class of people who monopolize skills and decision-making -- what he calls the "coordinator class". Ironically, the philosopher Bakunin warned of this over a century ago about such a systems; a system under the control of an elite minority "overflowing with brains". Ultimately, Albert proclaims, we should reject such "socialist" systems on the same grounds that we reject capitalism; they're flawed, and violate basic human rights and "the values we hold dear".

But again, the focus of this book is to actually develop a new economy -- its relations, institutions, and so on. At the same time, it's remarkably consistent with a long tradition of libertarian thought from the Left. Albert merely expands upon those ideas in order to arrive at a realistic, desirable economic vision for the future.

Economies affect people. Understanding this and working to make that relationship compatible should be our concern. This book is an important step in that direction.

Just another attempt at brainwashing the masses
This book is good for two audiences:

1. People who are socialists and want to read more ways they can implement their big plans to destroy capitalism.

2. People who are reasonable/capitalists who want to read a laughable proposal to unite the masses and bring down the great evil capitalist societies of the world.

So basically this book is suitable for anyone. But seriously, it is simply another way to say "Down with successful people! I deserve an equal share of the economic pie just because I'm a human and I'm equal to everyone else!" and other familiar chants of the far, far left wing. It's actually quite amazing to me that people still propose such nonsensical "progressive" ideas to implement socialism and can keep a straight face. Some people are incapable of reason and/or learning apparently. This book tries to counter the common (as in common-sense) attacks on socialism and uses the familiar notion that past attempts at socialism were different or implemented incorrectly and that this new great revolutionary book has the answers to make sure the next attempt is successful.

2 points for effort, 1 for result
Credit to Albert for exploring new ideas. A few good insights. But I haven't been able to finish.

I found the writing style tedious.

The vision described feels stifling and bureaucratic. It does not appear to put a lot of value on individual freedom. For one thing, in a Parecon I need to get approval before I do anything. I even have to submit a plan for personal consumption. It seems I can't take any entrepreneurial initiative without approval, which aside from negative impacts on the economy and on innovation, strikes me as an unjustified restriction. (Sure, many people in a capitalist economy don't have these opportunities, but Parecon is taking us further backward in terms of some liberties).

The idea of being evaluated by workers' councils feels intimidating, but if done properly it could work well.

Okay, some things are worth trying. I'm convinced that a more cooperative approach to organising society is possible and desirable, but as for the more radical Parecon ideas, I'm highly sceptical.

It's not only this book and it's not only on the Left side of politics. Bias and a lack of rigour are too common: The Lexus and the Olive Tree by Tom Friedman was unsatisfying in its lack of rigourous, balanced analysis; and "The Road to Serfdom" was infuriating in its mixture of 1. half-truths (the efficiency of the market, and the inefficiency of government price-setting. Post-WW2 Britain even had inspector ensuring haircuts were the right price, so Hayek did have valid concerns), 2. blatant untruths (compromising the market leads inevitably to totalitarianism) and 3. enormous blind spots (Hayek completely ignores externalities, the free rider problem, and inequalities in opportunity due to differences in health care and education).

So Friedman and Hayek are no more satisfactory than Albert. Actually, Albert has been far more willing to push the boundaries and explore new ideas. So Parecon does have value.

It's worth reading someone who is genuinely insightful and rigourous and isn't stuck in one viewpoint. I'm very impressed with Amartya Sen's "Development and Freedom". Intelligent, rigourous and balanced. Importantly, it balances a philosophical analysis of freedom with a very empirical examination of outcomes. I'm having to read it very slowly, but it's got far more substance than Parecon, or the other books mentioned. I can see why Sen won a Nobel Prize.

Parecon has its place, but I'd recommend getting a firmer grip on economics and issues of freedom before you do - and Sen's book is a good place to start.

Albert's best work on ParEcon yet.
It is amazing to see critics trivialize the incredible amount of evolution in economic theory that it has taken to get us to the point of a workable and equitable product that both enhances work output and quality of life. Demonizing Participatory Economics is very easy.. unless you've actually read the book.

What Albert presents in PARECON is a solid, workable plan worthy of thought, discussion and debate in every level of society. Albert has solidified the original economic theories that he developed with Robin Hahnel in their previous works together (Looking Forward; Political Economy of Participatory Economics), and has presented thoughtful reflections on the workability of such a system in our world.

It is often that critics who have not actually read through the proposals that ParEcon presents argue against it with such erroneous statements as, "the jobs that produce the most value, i.e., the most important jobs, will go unfilled!" I challenge you, the reader, to find out just how untrue this is for yourself. Participatory Economics is a long-awaited step in the evolution of economic theory, and I encourage everyone to take a look into it. ... Read more

Reviews (3)

Unlike any of Schelling's other works..
Most people reading this review will know Schelling as a renowned game-theorist/economist, and perhaps as a nobel-prize winner. This is bound to lead to an impression that his books must most likely be economic discourses full of the metrics and highfalutin theoretical abstractions that usually pervade the field in academic circles.

I'll dispel that myth and have you know that Schelling's books -- notably this one and his seminal "Strategy of Conflict" (SOC) -- are as close as you'll come to a readable yet gripping compendium of his fascinating economic thinking. His writing is purposefully simple, and his sharp arguments evoke thoughts about matters that can and will appeal to just about any Joe Bloggs.

But this book is different from any of Schelling's other published works.

SOC for instance was a compilation of roughly a dozen essays discussing negotiation, conflict and strategy...the applications of which were international -- diplomacy, deterrence, arms control, foreign aid, environmental policy, nuclear proliferation, organized crime, racial segregation and integration, tobacco and drugs policy, and ethical issues in policy and business.

While most of Schelling's work including SOC has been of a macro-economic bent, the essays in this book extend his theories to a more personal, social level -- things such as how people maneuver in traffic jams, how parents negotiate with their kids (toughest customers in my book), how they behave when confronted with ransom demands, or file suits, or devise agendas for a meeting or their daily lives. I would draw your attention in particular to chapter 6, "Strategic Relationships in Dying" which touches upon some very interesting subjects such as the relationship between a patient and his doctor, especially a terminally ill patient -- where significant human "choices" need to be made to withhold information, to authenticate assertions, and the conflict of interest that arises within small groups. This article truly underscores that apart from being a leading political economist, a métier Schelling has clearly excelled at, he is also at heart a fabulous thinker and writer.

I highly recommend this book to anyone who is interested in strategy, or economics, or negotiation, or even a basic thought-provoking intelligent read.

Shashank Tripathi

How to think
This book taught me nothing less than how to think correctly about social and political issues - not through instruction, but by example. I was lucky enough to have it assigned to me, and in introduction the professor said, "Schelling is my guru." Count one more acolyte.

A political economist's insightful way of looking at issues.
A very interesting book. I read it when it first came out, and I still refer back to it from time to time. Schelling takes a look at a myriad of social issues from taxation policy to the cost/benefit analysis of new airport lights for a small community and always makes the reader think. He has a great way of turning situations around so that one can see both sides of an argument and then make informed, and sometimes, rational decisions. A good book on public policy which can turn a liberal into a conservative and vice versa! ... Read more

Amazon.com

Philip Evans and Thomas S. Wurster think that the Internet can blow away practically any business, and in Blown to Bits, they examine how the new economy is "deconstructing" industries such as newspapers, auto retailing, and banking while creating new opportunities for others. They write that the "glue that holds today's value chains and supply chains together" is melting, and that even "the most stable of industries, the most focused of business models and the strongest of brands can be blown to bits by new information technology."

Evans and Wurster, both executives of the Boston Consulting Group, argue that the Internet demands new business strategies because it provides companies tremendous "reach" for customers without sacrificing "richness," or the quality of the information about products and services. The book shows how some businesses--Microsoft and Intuit in personal finance, Dell Computer in retailing, and the Automotive Network Exchange in manufacturing supply--are thriving amid a rapid expansion of connectivity and the widespread acceptance of new technical standards on the World Wide Web. Clearly written and tough-minded, Blown to Bits is required reading for business leaders, entrepreneurs, strategists, and others concerned about the new economics of the information age. --Dan Ring ... Read more

Reviews (64)

Good discussion of eCommerce Dynamics
Blown to bits provides a good review of the fundamental issue in eCommerce, what are you going to be when you go virtual. The premise, that you compete on reach or richeness, provides a way of distinguishing the various paths through eC as well as the impact of eCommerce on business models and market structures. Overall, the book is worth the read, however, the authors rely too heavily on the richness/reach framework so it shows some wear-n-tear latter on in the book. This is a strategy/economics type work, so if you are looking for implementation guidance this is not the book for you. If you are looking for something that will help explain what eCommerce may be doing to your company and markets its as good as anything out there and better than most.

Interesting Insight into the New Economics of Information
Richness or reach? The trade-off used to be simple but absolute: your business strategy either could be focus on "rich" information-customized products and services tailored to a niche audience-or could reach out to a larger market, but with watered-down information that sacrificed richness in favour of a broad, general appeal. Much of business strategy as we know it today rests on this fundamental dilemma.

Now, say Evans and Wurster, the new economics of information is eliminating the trade off between richness and reach, blowing apart the foundations of traditional business strategy. Blown to Bits reveals how the spread of connectivity and common standards is redefining the information channels that link businesses with their customers, suppliers, and employees. Increasingly, your customers will have rich access to a universe of alternatives, your suppliers will exploit direct access to your customers, and your competitors will pick off the most profitable parts of your value chain. Your competitive advantage is up for grabs.

To prepare corporate executives and entrepreneurs alike for a fundamental change in business competition, Evans and Wurster expand and illuminate groundbreaking concepts first explored in their award-winning Harvard Business Review article "Strategy and the New Economics of Information", and present a practical guide for applying them.

Examples span the spectrum of industries-from financial services to health care, from consumer to industrial goods, and from media to retailing. Blown to Bits shows how to build new strategies that reflect a world in which richness and reach go hand in hand and how to make the most of the new forces shaping competitive advantage.

Philip Evans is a Senior Vice President of The Boston Consulting Group. Thomas S. Wurster is a Vice President of The Boston Consulting Group in Los Angeles. The authors are co-leaders of The Boston Consulting Group's Media and Convergence Practice.

Reviewed by Azlan Adnan. Formerly Business Development Manager with KPMG, Azlan is currently Managing Partner of Azlan & Koh Knowledge and Professional Management Group, an education and management consulting practice based in Kota Kinabalu, Malaysian Borneo. He holds a Master's degree in International Business and Management from the Westminster Business School in London.

Internet Hype
The authors must be embarrassed. But they are probably too busy on their next bogus book full of more mananagement consulting buzzspeak and claptrap.
"Blown to Bits"?--perhaps they were referring to the bursting of the Internet bubble??

Blown to Bits
BLOWN TO BITS
How the new Economics of Information transforms Strategy
Authored by Philip Evans & Thomas S. Wurster

By Mike Jones
Management Information Systems
05/27/03

This book is about how the new age of technology dealing with the way information has changed the business environment forever. It starts out with the example of Encyclopedia Britanica and how they were leaders in their field in the late eighties and early nineties. Though they were very pricey the sales force targeted families with young children and the parents had to have this source of valuable information for their children. Sales were very high and there was no competition for the Encyclopedia icon. Everything was great until the computer age took hold and all of a sudden you could get that same information on a little round disk known as a CD-ROM for a fraction of the cost. That disk was even being given away with the purchase of a microcomputer that people could use for other things as well. This goes to show us that even the strongest business can be blind sided when they least expect it. Moral to be learned here is that "even the most venerable can be the most vulnerable".
All businesses are information businesses and the information is the main glue that holds any business together. The business of information is different than the business of things. When something is sold, the seller no longer owns it but when a piece of information is sold, the seller still has access to that information and can sell it again. Although the two are different they are still very much linked together as all things consist of some kind of information.
One of the most fundamental issues of the information business in the beginning was the dilemma of Richness and Reach. It was nearly impossible to have both Richness and Reach in information but the rise of the computer industry and the Internet has changed that forever. There are six aspects that come into play when talking about Richness of information and they are Bandwidth, interactivity, reliab