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

Author

Listed:
  • Zaman, Monowaruz

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.

Suggested Citation

  • Zaman, Monowaruz, 2018. "Economics of Information Biasing: A Unified Economic Theory That Leads to New Sustainability Concepts," MPRA Paper 86527, University Library of Munich, Germany, revised 24 Apr 2018.
    • Handle: RePEc:pra:mprapa:86527
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    File URL: https://mpra.ub.uni-muenchen.de/87455/1/MPRA_paper_87455.pdf
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    References listed on IDEAS

    as
    1. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 857-880.
    2. Yeager, Timothy J. & Yeager, Fred C. & Harshman, Ellen, 2007. "The Financial Services Modernization Act: Evolution or Revolution?," Journal of Economics and Business, Elsevier, vol. 59(4), pages 313-339.
    3. A. W. Phillips, 1958. "The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861–1957," Economica, London School of Economics and Political Science, vol. 25(100), pages 283-299, November.
    4. Zaman, Md Monowaruz, 2008. "Welfare dynamics based on a new concept of inefficient equilibrium," MPRA Paper 11303, University Library of Munich, Germany.
    5. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
    6. Monowaruz Zaman, 2012. "Greenhouse care economics: a solution to the capitalist's dilemma," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 6(2), pages 189-204.
    7. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-368, June.
    8. Monowaruz Zaman, 2012. "A consolidated economic model based on a new concept of biased equilibrium," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 6(1), pages 55-72.
    9. repec:hhs:iuiwop:430 is not listed on IDEAS
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Economic Theory; General Equilibrium; Biased Equilibrium; Neoclassical Economics; Institutional Economics; Information Economics;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • P10 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - General

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