Knowledge Problem

The 'Knowledge Problem' Substack explores concepts in economics, regulation, technology, and governance with a focus on electricity markets, market failure theory, economic growth, and the role of institutions. It critically examines policy analyses, regulatory practices, and the interplay between technology and market dynamics.

Economics Regulation Technology Governance Electricity Markets Market Failure Economic Growth Institutional Design Public Policy Environmental Economics

The hottest Substack posts of Knowledge Problem

And their main takeaways

Regulation's Role in Stifling Innovation

39 implied HN points • 07 Jun 23

Regulation based on cost recovery stifles innovation by not focusing on value creation
Traditional economic regulation in the electricity industry is static and not adaptive to dynamic environments
Regulatory institutions need to evolve towards promoting competition and consumer information for innovation and value creation

Subsidies, External Costs, and Deadweight Loss

39 implied HN points • 27 Jul 23

💼 Business Energy Tax policy Market Dynamics Subsidies Political Economy

Understanding economic analyses of power markets is crucial for applied economics.
Federal subsidies for wind and solar impact wholesale power markets by creating inefficiencies and distorting outcomes.
Tax credits like the PTC/ITC are costly ways to encourage renewable energy generation, and a carbon tax might be more efficient.

Markets Are Knowledge Ecosystems

1 HN point • 25 May 23

💰 Finance Economics AI

Markets function as knowledge ecosystems where prices communicate dispersed knowledge.
Economists differentiate between knowledge and information, highlighting the importance of tacit knowledge in decision-making.
The knowledge problem in markets is more of a cognitive challenge than a computational one, impacting the effectiveness of AI in replicating human decision-making.

Commentary on economics, information, and human action

0 implied HN points • 24 Aug 20

The post discusses economics, information, and human action.
Focus is on economics of organizations, regulation, and information.
Topics include technology, electricity, transactive energy, market epistemology, and 18th-century political economy.