Ebook: Economics of Information Biasing

This book describes a new scientific paradigm of economics that unifies the diverse thoughts of economics to provide a simplified but holistic view of real-world economic and social structures. It goes deep into very fundamental dynamics of rational behavior of economic agents with respect to information sharing amid their diverse self-interests. In a real-world economy, the probability of achieving Pareto efficiency for a subset of the population is much higher than for the whole population. This model is enhanced to describe that our market is not uniform but distributed in layers of energy states. Our social and economic institutions can be subjectively modeled as an information biasing chain, where economic agents are positioned in different abstract coalitions according to the interdependence of their payoff functions. The upper layer coalitions virtually control the institutions for dominance, and they have greater influences on our markets that provoke growth by exhausting energy and other natural resources.