Intangible investment behaves differently

SQL2219 wrote: post #2

Plenty of people are paying attention,and Gates contradicts his own title with this sentence: "The portion of the world's economy that doesn't fit the old model just keeps getting larger." How can it get larger if no one is paying attention?

Easily, if it gets larger because people are naturally following other incentives. How does the Pacific garbage patch keep getting larger if people are not focused on intentionally making it larger?

Re: Intangible investment behaves differently

#6

Post by mathattack » Wed, Aug 15, 2018, 11:48 AM UTC

I think his straw man for supply and demand is off. Higher demand doesn’t create lower prices. Lower prices creates “more quantity demanded” at a given level. If demand increases, then prices and quantity both go up. This may be semantics, but it isn’t like economics completely falls apart. Similarly, economics is able to handle products with high fixed and low marginal costs. (Natural monopolies)

I suspect he gave this book review assignment to an intern that majored in something besides CS, business or Econ.

Re: Intangible investment behaves differently

#7

Post by Shivetya » Wed, Aug 15, 2018, 11:51 AM UTC

zwily wrote: post #4

ggambetta wrote: post #3

> it combined Apple’s MP3 protocol WTF, seriously?

Yeah, seems unlikely that he wrote this.

It could simply be either from the study he mentioned or be worded as such to make it easier for non technical people to understand, as in more are familiar with MP3 than AAC. It is irrelevant to the greater point of the article

Re: Intangible investment behaves differently

#8

Post by ggambetta » Wed, Aug 15, 2018, 11:54 AM UTC

Shivetya wrote: post #7

zwily wrote: post #4

Earlier quoted context omitted.

Yeah, seems unlikely that he wrote this.

It could simply be either from the study he mentioned or be worded as such to make it easier for non technical people to understand, as in more are familiar with MP3 than AAC. It is irrelevant to the greater point of the article

I'm sure a man as smart as Bill Gates could find a way to write it in a way that is accessible to non-technical people and still not so egregiously factually incorrect.

Re: Intangible investment behaves differently

#9

Post by melling » Wed, Aug 15, 2018, 11:56 AM UTC

zwily wrote: post #4

ggambetta wrote: post #3

> it combined Apple’s MP3 protocol WTF, seriously?

Yeah, seems unlikely that he wrote this.

It wasn’t Apple’s hard drive either.

He probably just stuck with repeating what the book said or is just trying to keep it simple.

Re: Intangible investment behaves differently

#10

Post by occamrazor » Wed, Aug 15, 2018, 12:01 PM UTC

mathattack wrote: post #6

I think his straw man for supply and demand is off. Higher demand doesn’t create lower prices. Lower prices creates “more quantity demanded” at a given level. If demand increases, then prices and quantity both go up. This may be semantics, but it isn’t like economics completely falls apart. Similarly, economics is able to handle products with high fixed and low marginal costs. (Natural monopolies) I suspect he gave t…

I think he just wrote “demand” instead of “price” in that sentence.