Chapter

Introduction

Mia de Kuijper

in Profit Power Economics

Published in print October 2009 | ISBN: 9780195171631
Published online February 2010 | e-ISBN: 9780199871353 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780195171631.003.0001
Introduction

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This chapter lays out the logic and the structure of the book. The book follows a trajectory that begins by examining the underlying causes of change of our economic environment and that does not stop until readers have a firm grasp on the right strategic and investment steps to take in the new business world: a world that will merge as a result of the changes brought about by the falling cost of information. The introduction explains that the framework that the book has developed for creating extraordinary returns is consistent with the emergence of perfect information and with the economics of perfect economics. Many of the parts of the economics of perfect information are developed over the course of the book. For instance the book establishes the economic validity of three lessons that the author observed from practical business experience—as an executive at PepsiCo, Royal/Dutch Shell and AT&T, as a senior investment banker, as a strategy consultant and as an entrepreneur—but that would have been considered heresies in traditional mainstream economics. These three heresies are: aspiring to achieve extraordinary returns in a world of perfect information; asserting that profit power is an economic concept, that it can be wielded ethically and reliably in a competitive setting, and that it can improve returns for others as well. And thirdly, daring to reveal that, contrary to mainstream economic doctrine, perfect information does not bring about perfect markets; even worse, that perfect information is the source of an entire new class of market failures or imperfections.

Keywords: profit power economics; extraordinary returns; emergence of perfect information; logic; structure; heresy; new class of market failures; perfect information is the source of market failures; mainstream economic doctrine

Chapter.  4361 words. 

Subjects: Macroeconomics and Monetary Economics

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