The New "Emergence Economics" of Innovation And Growth, and What It Means for Communications Policy

INTRODUCTION ............................................................................. 219 Back to School ........................................................................... 219 A New Economy ....................................................................... 220 A New Framework .................................................................... 220 Some Caveats ............................................................................. 222 I. EMERGENT ECONOMY: OVERTHROWING THE OLD REGIME ......................................................................... 223 A. Introducing Emergence Economics ................................... 223 1. The Nature of Markets: Complex Cascades ................. 224 2. The Nature of Competition: Imperfect Incentives ....... 227 3. The Nature of People: Behavioral Beings..................... 229 4. The Nature of Analysis: Mismatched Models .............. 230 B. Presenting a Rough Formula For Emergence .................... 231 1. Agents ........................................................................... 232 2. Networks ....................................................................... 237 3. Evolution ...................................................................... 241 4. Emergence of Networks and Growth ........................... 247 II. NETWORKED ECONOMY: THE INTERNET AS