Economics of Information Biasing: A Unified Economic Theory That Leads to New Sustainability Concepts

Zaman, Monowaruz (2018): Economics of Information Biasing: A Unified Economic Theory That Leads to New Sustainability Concepts.

Abstract

The author believes that his concept “Biased Equilibrium” based on information sharing strategies of individual economic agents brings two scientific paradigms of economics, neoclassical economics and institutional economics together from the origin of general equilibrium to provide holistic view of real world economic and social structures. In this article he goes deep into the concept of dynamics of rational behaviors with respect to diverse self-interests of individual economic agents. Our social or economic institutions can be subjectively modeled as an information biasing chain where individuals are positioned in different abstract coalitions according to interdependence of their payoff functions. The upper layer coalitions virtually control the institutions and they have greater influences on our economy that provokes growth by exhausting energy and other natural resources and causes climate change. His model also provides guidelines for transiting from a growth based economy to a sustainable economy, while solving macro and micro-economic challenges in real time.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic Theory, General Equilibrium, Biased Equilibrium, Neoclassical Economics, Institutional Economics, Information Economics
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B41 - Economic Methodology; B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B52 - Institutional ; Evolutionary; B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B59 - Other; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D85 - Network Formation and Analysis: Theory; P - Economic Systems > P1 - Capitalist Systems > P10 - General

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