Monday, October 04, 2010
Google's ad platform is a gaping hole in iOS parental controls
Sunday, October 03, 2010
The key to happiness
Saturday, October 02, 2010
Why do corporations (firms) exist?
Economists used to wonder, from a theoretical perspective, why "firms" including companies, and especially large corporations, exist (aka theory of the firm). In 1937 Coase thought that while corporations didn't allocate labor and capitol as well as the market, this was offset by lower transaction costs.
Of course transactions costs in the net era are far less than in Coase's time, so this doesn't explain why corporations remain so entrenched.
This still seems like a valid question. Does knowledge work, in particular, scale all that well? Movies seem to be put together by loose coalitions of small to medium sized companies, why aren't more things done like that?
I suspect most people familiar with large corporations would agree that often the company seems much less than the sum of its parts. In particular, the absence of internal markets can make intra-company collaboration less efficient than market based collaboration. Corporations, on the inside, operate like the command economies of the Soviet Empire (or, for that matter, like today's China -- which is doing well for the moment).
I'm trying to put together a list of things that large corporations can do uniquely well. I wasn't at all impressed with the conventional "theory of the firm" list. Here's mine ...
- Act without the restraints of antitrust law. A large corporation can do many things that would require collusion to be done by smaller entities.
- Change laws, particularly accounting standards and tax laws, to favor large corporations and lower their cost of capitol. This creates a positive feedback loop where tax laws and accounting rules favor large corporations, which in turn influence laws and rules that favor large corporations and so on.
- Corporations can buy senators and lesser politicians, again without collusion.
- Corporations can engage in financial warfare, cutting off suppliers to smaller competitors, blocking access to capitol, and so on.
- Corporations can capture regulators.
- Corporations may be able to create and institute processes that allow them to do knowledge work with "average" knowledge workers instead of temperamental and expensive "stars". (I don't think this actually works, but a lot of effort is spent on this.)
- Corporations can buy A and above ratings from (corrupt) rating agencies.
- Once a corporation exists, it has an unusual ability to sustain itself even when its mission ends (like the inquisition)
Taking these items as a whole, it's apparent that once corporations are established, they are large and powerful enough to change their ecosystem to suit them. Rather like some primates.
I'll update my list as I get more ideas. Any suggestions?
See also:
My stuff
- The Corporation - what next? (8/2010)
- How big should financial firms be? (3/2009)
- Troubled capitalism: The corporate entity (Iain Banks, 8/2010)
- Self sustaining entities: corporations and the Spanish Inquisition (6/28/2006)
- The corporation as psychopath (Economist book review, 2004 - I've updated the post with a copy of the since lost review)
- Beyond the first cause: Deepwater Horizon and the publicly traded company (6/20/21010)
- Understanding the elections - what's really changed (11/4/2010)
- The morality of markets - and a response to hunger (9/28/2010)
Other people's
- The Nature of the Firm - Wikipedia, the free encyclopedia
- Anti-Dismal: Williamson and the theory of firm (10/16/2009)
- Llamas and my stegosaurus: Artificial Persons (1/22/2010)
- The Corporation Film and The Corporation: The Pathological Pursuit of Profit and Power Joel Bakan (2004)
Update 2/25/11: In a Krugman article I learn that Williamson won the Nobel in 2009 for work in the 70s on the theory of the firm. So Williamson extended Coase ...
Williamson argues that the firm is best regarded as a "governance structure," a means of organizing a set of contractual relations among individual agents. The firm, then, consists of an entrepreneur-owner, the tangible assets he owns, and a set of employment relationships ...
Personally I wasn't that impressed with the descriptions I read of Williamson's work, but Krugman likes it (emphases mine)...
Oliver Williamson shared the 2009 Nobel mainly because of his work on a question that may seem obvious, but is much less so once you think about it: why are there so many big companies? Why not just rely on markets to coordinate activity among individuals or small firms? Why, in effect, do we have a lot of fairly large command-and-control economies embedded in our market system?
Williamson answered this in terms of the difficulties of writing complete contracts; when the tasks that need to be done are complex, so that you can’t fully specify what people should do in advance, there can be a lot of slippage and strategic behavior if you rely on market incentives; in such cases it can be better to do these things in-house, so that you can simply tell people to do something a particular way or to change their behavior.
... there are times when it’s better to rely on central planning than to leave things up to the market...
Krugman's "Central planning" comment sent the usual suspects frothing mad. They've obviously never lived in a large corporation. I have. Krugman is spot on.
Friday, October 01, 2010
Will this work with your printer?
Convenient, yes. Unnerving? No, I've gotten used to this.
Guatemalan STD in 1946, American torture in 2006
Thursday, September 30, 2010
Warp drives and extracting energy from information
Technology Review: Blogs: arXiv blog: How to Build a Warp Drive Using MetamaterialsI liked the May 2010 multiverse link ...
...Metamaterials are substances in which their ability to support electric and magnetic fields can be changed. Fiddle with these properties in just the right way and you can steer electromagnetic waves in all kinds of strange and exotic ways.
The highest profile use of this idea is to build invisibility cloaks but there's another more fascinating application. It turns out there is a formal mathematical analogy between the way metamaterials bend light and the way gravity does it. Inside metamaterials, electromagnetic space becomes distorted in exactly the same way as spacetime in general relatively.
That means physicists can use metamaterials to simulate the universe itself and all the weird phenomenon of general relativity. We've looked at various attempts to recreate black holes, the Big Bang and even multiverses...
Today, Igor Smolyaninov at the University of Maryland in College Park... says it is possible to create metamaterials that are analogous to various kinds of spaces dreamt up by cosmologists to explain aspects of the Universe.
In these theories, space can have different numbers of dimensions that become compactified early in the Universe's history, leaving the three dimensions of space and one of time (3+1) that we see today. In symmetries of these spaces depend on the dimensions and the way they are compactified and this in turn determines the laws of physics in these regions.
It turns out, says Smolyaninov, that it is possible to create metamaterials with electromagnetic spaces in which some dimensions are compactified. He says it is even possible to create substances in which the spaces vary from region to region, so a space with 2 ordinary and 2 compactified dimensions, could be adjacent to a space with just 2 ordinary dimensions and also connected to a 2d space with 1 compactified dimension and so on.
The wormholes that make transitions between these regions would be especially interesting. It ought to be possible to observe the birth of photons in these regions and there is even a sense in which the transition could represent the birth of a new universe."A similar topological transition may have given birth to our own Universe," says Smolyaninov.
He goes on to show that these materials can be used to create a multiverse in which different universes have different properties. In fact it ought to be possible create universes in which different laws of physics arise.
That opens up a new area for optical devices. Smolyaninov gives the example of electromagnetic universes in which photons behave as if they are massive, massless or charged depending on the topology of space and the laws of physics this gives rise to...In more recent related news Hawking radiation has also been detected in a non-metamaterial optical experiment that created a physical system with the mathematical properties of black hole.
Talk about the unreasonable effectiveness of mathematics. The universe is feeling awfully recursive; maybe Wolfram was on to something. If you're going to run a simulated universe, it's good to make it highly recursive.
Meanwhile another group of physicists have implemented Maxwell's demon, and have allegedly demonstrated the extraction of energy from information. Soon they'll extract so much information they'll create a black hole (sorry, I'm feeling a bit giddy).
Oh, I almost forgot. You can't make an FTL warp drive, but maybe you can make a 1/3 c warp drive. I wonder if the warped space time would make gravitational wakes ...
Update 10/4/10: More on information physics. How long before someone announces that they've discovered how to reboot the universe?
A habitable planet around Gliese 581
The star system is about 9 billion years old. Time enough.
The last time I ran a Drake Equation estimate I ended up with between 10 and 170 civilizations currently active in our galaxy. This data point pushes the posterior-probability to the higher end of that range.
We don't run into them though. So they must all be pretty darned shortlived ....
Wednesday, September 29, 2010
iPad Mathematica and Rainbow's End
Hey, these days 4 years is pretty good for science fiction prognostication.
Synchronidentaly Wolfram is singing the praises of the iPad as the best platform for his "new kind of science" tome ($10). You can't (yet) run a true Mathematica client on an iPad, but you can run the $1.99 Wolfram Alpha iPad app -- which is closer than you might think.
Did I mention the iPad app is $2? Excuse me while I hide in the corner and wimper a bit.
See also.
Newfoundland hammered by hurricane
So if there'd been any US coverage, I'd have noticed Newfoundland was hammered by Hurricane Igor a week ago ...
Hurricane Igor (2010) - Wikipedia, the free encyclopediaThere are only 480,000 people in Newfoundland, and it is as poor as it is beautiful. Poor by Canadian standards, that is. 100 million is a lot of damage there.
... Significant wind and flooding damage was reported across much of the island of Newfoundland as Igor passed just to the east. Many communities had to declare a state of emergency and some parts of the community of Clarenville were evacuated due to flooding. 238 mm (9.37 inches) of rain fell on the Burin Peninsula at St. Lawrence, making Hurricane Igor at least the third wettest tropical cyclone to be recorded in Canada; roads and bridges were completely washed away as well.[30] The Bonavista Peninsula and Avalon Peninsula were also hard hit, with severe flooding in many communities in those areas as well. Power outages were also reported in many communities in eastern Newfoundland as a result of the strong winds.[31] Preliminary assessments place losses in Newfoundland well over $100 million.[32] One person is dead from Random Island after reportedly being swept out to sea...
The lead article in The Telegram today is a convenience store robbery. So either they're recovering well, or St John's leading newspaper is only a facade. I suspect both are true. Newfies are a tough crowd though, a hurricane might not really register.
Tuesday, September 28, 2010
Trust and credential management: MyOpenID
I like my four un/pw proposa1 + one major password. So I wondered if anyone was going to do it.
That made me think again about MyOpenID, and what I wrote about Simplenote. I love Simplenote, but there are security risks to trusting them with a large volume of private information.
How much greater then, is the risk of trusting one's most precious credentials to MyOpenID. What business model do they have? Why don't they already provide the approach I'm advocating? Should I be concerned that the MyOpenID blog link goes to a blog that never mentions the service?
To their credit MyOpenID provides an easy to find and use account deletion process. I have deleted my account. It just doesn't make sense to make a company that might vanish at any time a major holder of my digital identity.
See also:
The morality of markets - and a response to hunger
Krugman is responding to accusations that he favors war as a solution to the Great Waste (sequelae to the Great Recession). He gives a smart response to dumb questions, but reading how major wars do Keynes better than politicians made me think about What Would the Market Do?
What do I mean? Well, consider this. Charlie Stross, one of my mind expanding writers included "
The story captured a sense I often have that the large, complex adaptive systems we live in are, seen from a certain angle in a certain world as real and unreal as our own, alive. Not smart like we are, but alive in a landscape dominated by very powerful amoebae.
In this worldslice Markets are entities with their own agenda -- mostly to eat and grow. Sometimes, though, the growing is slow. The Market has to find new food. It moves along a chemotropic gradient to a new source of nutrition.
War.
[1] I updated this paragraph thanks to a helpful comment.
The cultural impact of the Pill - neuroendocrinology
That's interesting. It means it's now probably safe to mention one of the most interesting papers I ever wrote. For obvious reasons it was quickly buried.
I was an itinerant Watson Fellow in early 1982, staying with a very generous USAID worker and his wife in Dakka, Bangladesh. I was basically a parasite, but somehow I got it into my head to write a paper on the sociocultural implications of widespread OCP use in Thailand.
The premise of my paper was simple. Different OCPs, and progesterone implants, where known to have different effects on mood. Testosterone biased OCPs had one set of effects, estrogen biased another set, progesterone yet another. It seemed obvious that if you gave these medicines to millions of women the sum of the individual mood changes might have social implications.
If you wanted to change a society in a certain direction, you might favor one OCP over another. I was keen on social engineering in those days. That was before I was drummed out of the Trilateral Commission [1], and before a subsequent social engineering paper almost ended my first year of medical school.
Needless to say, I never got any comments about my pill paper. I was remarkably obtuse at that age, but even I had a sense this was not a wise topic choice. If anyone read my paper, they would have torched it immediately.
I suspect, however, that I was right.
[1] Joke. Sort of.
The smartest president in decades
'Destructive' Fox News And The 'Darker' Parts Of The Tea Party: Obama's Rolling Stone Interview | TPMDC
... The golden age of an objective press was a pretty narrow span of time in our history. Before that, you had folks like Hearst who used their newspapers very intentionally to promote their viewpoints. I think Fox is part of that tradition -- it is part of the tradition that has a very clear, undeniable point of view. It's a point of view that I disagree with. It's a point of view that I think is ultimately destructive for the long-term growth of a country that has a vibrant middle class and is competitive in the world...I am grateful he's willing to be president.
Murdoch is anti-civilization. Maybe he's trying to avert the singularity by collapsing America. Hey, it explains a lot.
Monday, September 27, 2010
The $80 ultra-portable - in unexpected form
The Carriers’ Rebellion | Monday NoteThat's quite a precise number. Not "below $100", $79.
... Google wants to see smartphones priced at $79, without subsidy, thus taking away the carriers’ opportunity to dictate features. At $79 and no contract, consumers can change handsets and carriers at will. This frees Google to have a direct relationship with the consumer, allowing their money machine—advertising today, entertainment and business services tomorrow—to run unimpeded.