The Economics of Abundance

Here are some things I used to believe:

  1. The power of the free market comes from competition
  2. If you are nice to someone, you will be rewarded commensurately
  3. A penny saved is a penny earned
  4. The more scarce something is the more valuable it is

I no longer believe these statements to be true.  To understand why, I’d like to share a little of my journey as an entrepreneur and investor.

In the mid to late ’90s I was working on a startup and getting my feet wet as an angel investor in Silicon Valley.  I, like everyone I knew, was an adherent of the Chicago School of Economics and the Efficient Market Hypothesis.  One of the mantras of this religion is that

The invisible hand of the marketplace will feed us all, but we have to compete vigorously with one another for it to work its magic.

Signing a Non-Disclosure Agreement on a first date — that’s not just good business, but a moral …


Has anyone played Foldit, the protein-folding game that is designed to advance the science?  This Wired article makes it sound like Ender’s Game meets biochemistry!  Sounds like the Poehlman kid is the protein-folding equivalent of Stephen Wiltshire.  I love the crowdsourcing, the meta-evolutionary algorithm of it (to find the savants), and the implications for science.…

Are Realtors Really Making Too Much?

The Freakonomics guys have been on this rant for years, and until recently, I agreed with their logic.  But the mounting evidence (in my mind) is starting to swing the other way.…

Complex Systems Concept Summary

I figured it was time for a reset and so the following is a summary of much of the foundational posting that I’ve done on this blog so far.  As always, a work in progress, subject to refinement and learning……

Evolution Favors Cooperation Over Competition

There is a myth in evolutionary biology, as well as in the zeitgeist, that evolution by natural selection is all about competition.…

Cooperation and Competition

It is well-understood that the primary relationship between agents in an evolutionary system is that of competition for resources: food, mates, territory, control, etc. It is also recognized that agents not only compete but also cooperate with one another, sometimes simultaneously, for instance hunting in packs (cooperation) while also fighting for alpha status within the pack (competition). If we look at inter-agent behaviors as existing on a continuum of pure competition on one end and pure cooperation* on the other, it is clear that there is broad range both within species and between agents of different species. Originally, cooperative behavior was explained away as an exception to the general competitive landscape and happened only when two agents shared enough genetic code (such as between parent and child) that cooperation could be seen as a form of genetic selfishness. While this true in a narrow sense, it misses the larger point which is that cooperation between any two or more agents can confer advantages to all …