The New Paradigm

Abstract

In Chapter 5 the new economic paradigm for the 21st century—a paradigm that is consistent with the emergence of perfect information—is introduced. This chapter demonstrates that due to the second inevitable trend, in transparency several aspects of mainstream economics need to be revisited. For instance, in transparency the two conditions for a general equilibrium cannot coexist, hence a general equilibrium is not possible. Also, the often-used simplifying assumption of normal distributions is not valid. Extraordinary profits and profit power, in contrast, are being proven to be valid economic concepts. In transparency, interdependence of decision making will turn a group into a network. For instance, an economic aggregate, such as “buyers,” becomes a network. The question is what kind of network. Powerlaw distributions—and powerlaw networks—can provide a new paradigm under certain conditions. These four conditions for powerlaw network dynamics in economic aggregates are derived in this chapter. This is the basis for the economics of perfect information, powerlaw economics.

Effect of patient choice and hospital competition on service configuration and technology adoption within cancer surgery: a national, population-based study

“… 36 , 37 , 38 Patients will gravitate to places that make themselves attractive and by doing so they will create centres that treat large numbers of patients, which itself will attract further patients. 39 …”