Value & incentives
Economics
What becomes scarce, and therefore valuable.
As information becomes abundant, trustworthy judgment becomes the scarce input. Economics frames why reasoning capability reorganizes markets, firms, and returns.
What it contributes
Explains the value thesis of the field: the returns to institutional reasoning, and the economics of a world where judgment compounds.
Foundational ideas
- Information economics
- Value under asymmetric knowledge.
- Increasing returns
- Advantage that feeds on itself.
- Transaction costs
- The cost of coordinating.
Open questions
- What are the returns to a unit of improved organizational judgment?
- How does reasoning capability change the boundaries of the firm?