Re: The Wikileaks Question
Posted: Sun Dec 12, 2010 9:17 pm
JR:
But, let me introduce another aspect that doesn't seem to have been considered:
Economists understand very well that privileged information in the hands of a few "experts" translated directly into power and financial advantage. George Akerlof, Michael Spence, and Joseph E. Stiglitz won a Nobel prize in 2001 for their work in this area.
The book (and now film) Freakonomics by "rogue" economist Steven Levitt and NYT journalist Stephen J. Dubner, offers us an interesting and surprising example of how information asymmetry works and how it can be countered- by getting the right information into the right hands. Summarized here:
According to wiki Information Asymmetry :
Here's one last bit that shouldn't come as any surprise:
Actually I think it's equally instructive in it's real-time demonstration of the US's usually cloaked repressive mentality.unsubstantiated speculation about Assange and Wikileaks after the next are diverting from both, the exposures through the cables of high crimes by many states and officials, and from a frontal, significant and generalizable assault by empire on our freedoms of the press and Internet.
But, let me introduce another aspect that doesn't seem to have been considered:
Economists understand very well that privileged information in the hands of a few "experts" translated directly into power and financial advantage. George Akerlof, Michael Spence, and Joseph E. Stiglitz won a Nobel prize in 2001 for their work in this area.
The book (and now film) Freakonomics by "rogue" economist Steven Levitt and NYT journalist Stephen J. Dubner, offers us an interesting and surprising example of how information asymmetry works and how it can be countered- by getting the right information into the right hands. Summarized here:
That is, a single individual brought down the KKK at perhaps the height of it's power by giving it's secret handshake and code-words to children. Neat-o.Chapter 2: How is the Ku Klux Klan like a Group of Real-Estate Agents?
The authors assert that information asymmetry is one of the most powerful economic tools. Entire industries have flourished and many significant historical events have transpired as the result of an imbalance in the flow of information. In keeping with this theory, the authors offer the story of a man who helped cripple the racist Ku Klux Klan simply by widely disseminating their secrets.
Stetson Kennedy infiltrated the group in the World War II-era and systematically documented the secret rituals and codes of the organization. Kennedy then supplied the records to Hollywood writers, who used the information to create a long-running story arc on the wildly popular Superman radio serial. Children across the United States imitated the shows in their schoolyard games, and gradually, the mystery, grandeur, and influence of the group were profoundly diminished.
According to wiki Information Asymmetry :
And moral hazard is:... deals with the study of decisions in transactions where one party has more or better information than the other. This creates an imbalance of power in transactions which can sometimes cause the transactions to go awry. Examples of this problem are adverse selection and moral hazard. ..
http://en.wikipedia.org/wiki/Information_asymmetry
Are you getting the picture?...when a party insulated from risk behaves differently than it would behave if it were fully exposed to the risk.
http://en.wikipedia.org/wiki/Moral_hazard
Here's one last bit that shouldn't come as any surprise:
By this measure, the US State Department has lost real economic and coercive power as a result of Cablegate....Although information asymmetry has recently been noted to be on the decline with the rise of the internet, which allows ignorant users to acquire hitherto unavailable information...
http://en.wikipedia.org/wiki/Informatio ... #Screening

