On Mon, 20 Sep 2004, Michael Pollak wrote:
> The right has gotten so good at getting outlets and polling
> organizations and think tanks and you name it that they have created a
> information bubble in which they believe.
Question: Stiglitz recently won the [not the] Nobel Prize in Economics for his work saying that any reckoning of costs had to include the economics of obtaining information. Has anyone ever attempted to extend his work towards an explanation of the regular occurrence of bubbles (which in standard economic theory aren't supposed to happen)? The rational economics that keep information bubbles inflated (esp. as media become more integrated and "competitive"), and their predictable effect on collective and individual judgement (since they change the data on which decisions are made) seem made for his sort of analysis. And on first sight, information bubbles seem more fundamental, more prevalent, and more explicable than economic bubbles.
Michael