This idea that Information technology drives economies of scale, how does it work? Based upon my years of searching the web, let me take a shot.
Uncertainty about final demand causes inefficiencies as the producer needs to plan for contingencies unknown. To recover efficiencies the producer seeks information about the demographics of consumption. That in turn leads the entrepreneur to develop communications technology. The new information provides the quantization map to gain minimum redundancy in production.
A marketing cycle, essentially. The economy is literally an adaptive Huffman encoder, seeking the maximum entropy quantization at all stages of production.
Seems obvious to me, but I am disentangled, sitting here in my basement staring at the information window. I can imagine building a robotic entropy encoder, searching out final demand like Groupon, but also searching out the intermediate quants, essentially designing the entire production network. My little robot could even assign Bitcoin values at each added value stage.
I have most of the code in components, I have javascript and the browser. What's to stop me? Oh yes, I hereby patent the idea.
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