11-3.1 'Equilibrium' - Anything innovative escapes the Invisible Hand

Politics and evolution are inherently zero-sum because both are about adaptation to the existing environment (i.e., indexical). But humans are creative because we can virtually render and tweak the representation of such environment with symbols, and can turn these games into positive-sum—evolutionary pressure will be always there but the game keeps changing much faster and voluntarily with humans.develop

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• 3-1c2e4.2 ‘Supply and demand’ - Physical is getting expensive

  • But 3-1c2e4.1 ‘Scarcity’ - Knowledge is rare but never a scarce resource
    • 5-1b1b1a3 Network effects (digital) ＞ Supply and demand (physical)

• 2-1d ‘Ecosystem’ & ‘Thermodynamics’ & ‘Double-entry bookkeeping’ - Everything is connected, there is no free lunch

• 2-1a0 ‘Creative destruction’ - Think outside the box. Evolution of ideas must be revolutionary. Knowledge creation involves rebellion against current explanatory framework.

  • The framework of equilibrium is not really applicable for things with network effects (i.e., basically anything innovative)
    • 5-1b1b1a1 Things can become easier the more complexity you have (Network effects = Power-law)

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• 2-1a0 ‘Creative destruction’ - Think outside the box. Evolution of ideas must be revolutionary. Knowledge creation involves rebellion against current explanatory framework.

• 3-1c2e4.1 ‘Scarcity’ - Knowledge is rare but never a scarce resource

• 5-1b1b1a3 Network effects (digital) ＞ Supply and demand (physical)

• 5-1b1b1a1 Things can become easier the more complexity you have (Network effects = Power-law)

• 3-1d7 ‘Escape velocity’ - Little expressivity goes long way

• 7-1a2a1.1 ‘Scale’ - Anything that scaled started small, at the edge, at the frontier, as an avant-garde

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• 3-1c2e4.2 ‘Supply and demand’ - Physical is getting expensive

• 11-3.2 ‘Regression to the mean’ - Don’t be fooled by randomness

• 11-3.3 ‘The law of diminishing returns’ - We can recalibrate the curve so that we are always at the growing phase of the S-curve!

• 11-3.4 ‘Utility’ (marginal, diminishing, increasing) - Specialization beats the Invisible Hand