Innovation and bounded rationality

12 avr. 2014
Bounded rationality is a major theory in micro-economics. It just says people are rational but their decisions are limited by the amount of information they have and by their own intelligence/education. This theory is not in compliance with Jung/Keirsey psychology types as well as with large statistical MBTI experiments (only 12% of the people are rational).
However, we can observe the four cases in various societies:

  • People are not educated and receive no information : Various dictatures, low level of innovation, bad economical and social performances : e.g.: North Korea
  • People are educated but receive no information : Crypto dictatures, medium level of innovation, good economical performances, average social performance : e.g. China
  • People are not educated but receive a huge amount of information : good level of innovation, good economical performances but recurrent crisis and bankruptcies, average social performance : e.g. USA
  • People are educated and receive a moderate/high level of information : average level of innovation, average economical performance, relatively good social performance : e.g. EU and India
Innovation appears in a place where people have a good general culture (including tech and art) and a storm of experiences (and thus information). In this scope, we cannot imagine these conditions can be enabled for a large group of people, a continent or even a country. Historical cases show that point: Venice XVI, Paris XIX, San Francisco XX ("49 square miles surrounded by reality" Kantner)... The dilemma of having an high density of smart people and a large amount of information looks only possible in relatively small human groups.

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