Welfare Economics

MBA types like to talk about “your business model,” and less so they like to talk about “their business model.”   I like to ask about the model’s effect on the wealth distribution.   It’s a hard question, but generally few businesses actually shift wealth and income in what I’d see as the desirable directions.

With that said here’s a cute B-School chart:

For my purposes think of these two technologies as two business models; i.e. ways of organising the world to create goods for sale to the public.  And for my purposes we can think of the two axis as being rich and poor.   It helps illustrate how the technology has consequences.

That drawing is taken from an interesting post by Steve Randy Waldman, who’s coming at the question I’m interested in from what might be a quite productive angle.  But one way or another this kind of modeling helps to illuminate what I mean when I try to highlight how your business model, standard, technology, ontology, etc. shape in interesting and oft powerful ways the resulting distribution.

One thought on “Welfare Economics

  1. Pingback: interfluidity » Welfare economics: housekeeping and links

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