As suggested in the prompt, Stiglitz seems to be more focused on deriving a general model for how changes in technology correlate to changes in economics. Stiglitz doesn't give any “real-world” analogies in his paper, choosing instead to build a standardized view of how a market works, regardless of what machines or technology is being used at the current moment. Stiglitz explains in detail how the risk-reduction put into place by every major business while on the verge of a recession does not stave off the recession, but only hastens its arrival.

    Stigltiz also makes the noteworthy observation, stating that a free markets are “institutions that have evolved to solve information problems ”. In one sense, a free market is self-regulating computer, that, when one issue arises, acts in a certain way to counteract that issue.

    Shapiro and Varian, on the other hand, argue that they (like Stiglitz) do not seek to predict the future, but rather seek standardized models that work in any economic situation, no matter what technology is currently being used. While they conclude their paper, saying that they wish to avoid analogies in their arguments, their entire introduction relies on real-world examples of what has and hasn't happened with certain technologies and tech companies.

    Now, this does not mean that S & V had nothing to contribute. In fact, I found many of their arguments and points very interesting, especially the part about “A wealth of information creates a poverty of attention”. I think that phrase, in particular, is very relevant in our current society (see my last post, the comic strip, for my opinion about that).

    As for who I align myself with ideologically, I'd have to say that I don't really like either situation. Now, I'm no Communist, but personally, I hate it when people think of money as the highest, best standard of value. Yes money is necessary and important, but I really wouldn't mind working for a 501c3 non profit one day. 501c3's do not work to earn money for their stockholders or even their owners. They work to provide a service or resource to the public. Most museums are 501c3's. All money earned from ticket sales, train rides, donations, tours, etc. goes back into the organization to fund and further improve the organization's achievement of its mission statement. And yes, some of that money can be used to pay employees to keep the organization's doors open. I would love to be able to support myself and possibly a family one day, while providing a service and educational resource to the larger community.