2015 03 18
- "Market power and regulation" (It's a little unclear who wrote this document, as I'm sure six pages isn't enough to warrant a Nobel prize. It is however a summation of Jean Tirole's ideas, so we'll credit him.)
- The PDF in question is a summation of a likely very dense economic paper. It covers Mr. Tirole's contributions to economic theory about oligopoly - where one market is controlled by a handful of very powerful companies.
- That illustration on the first page is pretty spectacular.
- "mastering one link of a chain can allow a monopolist to make profits in the market of the next link."
- "Tirole’s research would come to build upon new scientific methods, particularly in game theory and contract theory." - There's such a thing as "contract theory"‽
- I'm not sure whose fault this really is, but this is a very mysterious document. Who wrote it? Was it Mr. Tirole? If so, why is he writing in the third person? A little more background would be nice.
- I'm not entirely sure how this fits in with the course. Sure, it's business and all, but how does it relate to FOSS?
- "Even with a well-designed framework, a regulator will sometimes appear to be an advocate of the firm, but despite this she will nevertheless not allow herself to be bribed or actively withhold information." - This sentence is tremendously confusing.
- The idea of "asymmetric information" is a perplexing. If one is a regulatory body, couldn't you make laws and then demand whatever information you wanted?
- The document mentions "a menu of ingeniously constructed contracts," and then goes on to discuss exactly two kinds. Are there more, or is it just a very short menu?
- I don't spend a whole lot of time thinking about economics, but how did the concept of an oligopoly not exist in economic theory before Mr. Tirole's work?
- I don't feel particularly strongly about this document. It was mildly interesting, was well written, and conveyed information adequately. Beyond that, it is rather unremarkable.
3/5 <review increments>