Untitled - socium.ge

152 Marshall Van Alstyne and Nathaniel BulkleyReal outputReal outputLabor inputCapital inputLabor inputCapital input(a)(b)Figure 6.2(a) Moving to the frontier (e.g. better decisions). Achieve thesame output with fewer inputs, say by reducing waste.(b) Shifting the frontier (e.g. new processes). Achieve greateroutput with the same inputs, say by new technology. Any pointbelow or to the right of the frontier is attainable by being lessefficient with the same inputsDrawing from a base of different theory, each perspective emphasizesdifferent aspects of how people use information. Economic models helpunderstand questions of value and information as facts. Computationalmodels help understand questions of efficiency and information as instructions.The former applies statistical inference to information problems. Theeconomic model employs decision theory and principal agency to characterizerisk, search, and mechanisms for achieving efficient outcomes despiteincomplete information. Economists are also interested in how incentivesaffect production and information sharing. The computational model, on theother hand, applies rule-based logic to construct paths through a collectionof problems. The computational framework considers modularity, robustness,search, and connectivity. It also extends logically to information flowsand social networks.In each case, more effectively navigating a pattern of information connectionscan raise productivity. Core information concepts are mediated bynetwork structure so that topological models will inform our understanding ofeffective organization as information flows along channels determined bynetwork structure.