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🔗 Economics

An Information cascade or informational cascade is a phenomenon described in behavioral economics and network theory in which a number of people make the same decision in a sequential fashion. It is similar to, but distinct from herd behavior.

An information cascade is generally accepted as a two-step process. For a cascade to begin an individual must encounter a scenario with a decision, typically a binary one. Second, outside factors can influence this decision (typically, through the observation of actions and their outcomes of other individuals in similar scenarios).

The two-step process of an informational cascade can be broken down into five basic components:

1. There is a decision to be made – for example; whether to adopt a new technology, wear a new style of clothing, eat in a new restaurant, or support a particular political position

2. A limited action space exists (e.g. an adopt/reject decision)

3. People make the decision sequentially, and each person can observe the choices made by those who acted earlier

4. Each person has some information aside from their own that helps guide their decision

5. A person can't directly observe the outside information that other people know, but he or she can make inferences about this information from what they do

Social perspectives of cascades, which suggest that agents may act irrationally (e.g., against what they think is optimal) when social pressures are great, exist as complements to the concept of information cascades. More often the problem is that the concept of an information cascade is confused with ideas that do not match the two key conditions of the process, such as social proof, information diffusion, and social influence. Indeed, the term information cascade has even been used to refer to such processes.

🔗 Mathematics 🔗 Economics 🔗 Politics 🔗 Game theory

In game theory, the Nash equilibrium, named after the mathematician John Forbes Nash Jr., is a proposed solution of a non-cooperative game involving two or more players in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their own strategy.

In terms of game theory, if each player has chosen a strategy, and no player can benefit by changing strategies while the other players keep theirs unchanged, then the current set of strategy choices and their corresponding payoffs constitutes a Nash equilibrium.

Stated simply, Alice and Bob are in Nash equilibrium if Alice is making the best decision she can, taking into account Bob's decision while his decision remains unchanged, and Bob is making the best decision he can, taking into account Alice's decision while her decision remains unchanged. Likewise, a group of players are in Nash equilibrium if each one is making the best decision possible, taking into account the decisions of the others in the game as long as the other parties' decisions remain unchanged.

Nash showed that there is a Nash equilibrium for every finite game: see further the article on strategy.

🔗 Climate change 🔗 Economics 🔗 Politics 🔗 Energy 🔗 International development 🔗 Mining

The resource curse, also known as the paradox of plenty or the poverty paradox, is the phenomenon of countries with an abundance of natural resources (such as fossil fuels and certain minerals) having less economic growth, less democracy, or worse development outcomes than countries with fewer natural resources. There are many theories and much academic debate about the reasons for and exceptions to the adverse outcomes. Most experts believe the resource curse is not universal or inevitable but affects certain types of countries or regions under certain conditions.

🔗 Economics 🔗 Statistics

The gravity model of international trade in international economics is a model that, in its traditional form, predicts bilateral trade flows based on the economic sizes and distance between two units.

The model was first introduced in economics world by Walter Isard in 1954. The basic model for trade between two countries (i and j) takes the form of

${\displaystyle F_{ij}=G*{\frac {M_{i}*M_{j}}{D_{ij}}}}$

In this formula G is a constant, F stands for trade flow, D stands for the distance and M stands for the economic dimensions of the countries that are being measured. The equation can be changed into a linear form for the purpose of econometric analyses by employing logarithms. The model has been used by economists to analyse the determinants of bilateral trade flows such as common borders, common languages, common legal systems, common currencies, common colonial legacies, and it has been used to test the effectiveness of trade agreements and organizations such as the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO) (Head and Mayer 2014). The model has also been used in international relations to evaluate the impact of treaties and alliances on trade (Head and Mayer).

The model has also been applied to other bilateral flow data (also 'dyadic' data) such as migration, traffic, remittances and foreign direct investment.

🔗 Economics 🔗 Politics

The Nordic model comprises the economic and social policies as well as typical cultural practices common to the Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden). This includes a comprehensive welfare state and multi-level collective bargaining based on the economic foundations of social corporatism, with a high percentage of the workforce unionized and a sizable percentage of the population employed by the public sector (roughly 30% of the work force in areas such as healthcare, education, and government). Although it was developed in the 1930s under the leadership of social democrats, the Nordic model began to gain attention after World War II.

The three Scandinavian countries are constitutional monarchies, while Finland and Iceland have been republics since the 20th century. As of 2021, the Nordic countries are described as being highly democratic and all have a unicameral form of governance and use proportional representation in their electoral systems. Although there are significant differences among the Nordic countries, they all have some common traits. These include support for a universalist welfare state aimed specifically at enhancing individual autonomy and promoting social mobility, a corporatist system involving a tripartite arrangement where representatives of labour and employers negotiate wages, labour market policy is mediated by the government, and a commitment to private ownership within a market-based mixed economy, with Norway being a partial exception due to a large number of state-owned enterprises and state ownership in publicly listed firms. As of 2020, all of the Nordic countries rank highly on the inequality-adjusted HDI and the Global Peace Index as well as being ranked in the top 10 on the World Happiness Report.

Over the last few decades, the traditional Nordic model has transformed in some ways, including increased deregulation and expanding privatization of public services. However, the Nordic model is still distinguished from other models by the strong emphasis on public services and social investment.

🔗 Yugoslavia 🔗 Economics

Despite common origins, the economy of the Socialist Federal Republic of Yugoslavia (SFRY) was significantly different from the economies of the Soviet Union and other Eastern European socialist states, especially after the Yugoslav-Soviet break-up in 1948. The occupation and liberation struggle in World War II left Yugoslavia's infrastructure devastated. Even the most developed parts of the country were largely rural and the little industry of the country was largely damaged or destroyed.

🔗 United States/U.S. Government 🔗 United States 🔗 Medicine 🔗 Economics 🔗 Politics 🔗 Geography

Universal healthcare (also called universal health coverage, universal coverage, or universal care) is a health care system in which all residents of a particular country or region are assured access to health care. It is generally organized around providing either all residents or only those who cannot afford on their own, with either health services or the means to acquire them, with the end goal of improving health outcomes.

Universal healthcare does not imply coverage for all cases and for all people – only that all people have access to healthcare when and where needed without financial hardship. Some universal healthcare systems are government-funded, while others are based on a requirement that all citizens purchase private health insurance. Universal healthcare can be determined by three critical dimensions: who is covered, what services are covered, and how much of the cost is covered. It is described by the World Health Organization as a situation where citizens can access health services without incurring financial hardship. The Director General of WHO describes universal health coverage as the “single most powerful concept that public health has to offer” since it unifies “services and delivers them in a comprehensive and integrated way”. One of the goals with universal healthcare is to create a system of protection which provides equality of opportunity for people to enjoy the highest possible level of health.

As part of Sustainable Development Goals, United Nations member states have agreed to work toward worldwide universal health coverage by 2030.

🔗 Biology 🔗 Physics 🔗 Economics 🔗 Philosophy 🔗 Systems 🔗 Philosophy/Philosophy of science 🔗 Philosophy/Epistemology

In philosophy, systems theory, science, and art, emergence occurs when an entity is observed to have properties its parts do not have on their own. These properties or behaviors emerge only when the parts interact in a wider whole. For example, smooth forward motion emerges when a bicycle and its rider interoperate, but neither part can produce the behavior on their own.

Emergence plays a central role in theories of integrative levels and of complex systems. For instance, the phenomenon of life as studied in biology is an emergent property of chemistry, and psychological phenomena emerge from the neurobiological phenomena of living things.

In philosophy, theories that emphasize emergent properties have been called emergentism. Almost all accounts of emergentism include a form of epistemic or ontological irreducibility to the lower levels.

🔗 Economics 🔗 Books 🔗 Psychology 🔗 Anthropology

IQ and the Wealth of Nations is a 2002 book by psychologist Richard Lynn and political scientist Tatu Vanhanen. The authors argue that differences in national income (in the form of per capita gross domestic product) are correlated with differences in the average national intelligence quotient (IQ). They further argue that differences in average national IQs constitute one important factor, but not the only one, contributing to differences in national wealth and rates of economic growth.

The book has drawn widespread criticism from other academics. Critiques have included questioning of the methodology used, the incompleteness of the data, and the conclusions drawn from the analysis. The 2006 book IQ and Global Inequality is a follow-up to IQ and the Wealth of Nations by the same authors.

🔗 Biography 🔗 Computing 🔗 Mathematics 🔗 Military history 🔗 Military history/North American military history 🔗 Military history/United States military history 🔗 Military history/Military science, technology, and theory 🔗 Physics 🔗 Economics 🔗 Philosophy 🔗 Philosophy/Logic 🔗 Biography/science and academia 🔗 Philosophy/Philosophy of science 🔗 Philosophy/Contemporary philosophy 🔗 Military history/Military biography 🔗 Biography/military biography 🔗 History of Science 🔗 Computing/Computer science 🔗 Philosophy/Philosophers 🔗 Education 🔗 Hungary 🔗 Military history/World War II 🔗 Military history/Cold War 🔗 Physics/History 🔗 Physics/Biographies 🔗 Game theory 🔗 Eastern Europe

John von Neumann (; Hungarian: Neumann János Lajos, pronounced [ˈnɒjmɒn ˈjaːnoʃ ˈlɒjoʃ]; December 28, 1903 – February 8, 1957) was a Hungarian-American mathematician, physicist, computer scientist, engineer and polymath. Von Neumann was generally regarded as the foremost mathematician of his time and said to be "the last representative of the great mathematicians"; who integrated both pure and applied sciences.

He made major contributions to a number of fields, including mathematics (foundations of mathematics, functional analysis, ergodic theory, representation theory, operator algebras, geometry, topology, and numerical analysis), physics (quantum mechanics, hydrodynamics, and quantum statistical mechanics), economics (game theory), computing (Von Neumann architecture, linear programming, self-replicating machines, stochastic computing), and statistics.

He was a pioneer of the application of operator theory to quantum mechanics in the development of functional analysis, and a key figure in the development of game theory and the concepts of cellular automata, the universal constructor and the digital computer.

He published over 150 papers in his life: about 60 in pure mathematics, 60 in applied mathematics, 20 in physics, and the remainder on special mathematical subjects or non-mathematical ones. His last work, an unfinished manuscript written while he was in hospital, was later published in book form as The Computer and the Brain.

His analysis of the structure of self-replication preceded the discovery of the structure of DNA. In a short list of facts about his life he submitted to the National Academy of Sciences, he stated, "The part of my work I consider most essential is that on quantum mechanics, which developed in Göttingen in 1926, and subsequently in Berlin in 1927–1929. Also, my work on various forms of operator theory, Berlin 1930 and Princeton 1935–1939; on the ergodic theorem, Princeton, 1931–1932."

During World War II, von Neumann worked on the Manhattan Project with theoretical physicist Edward Teller, mathematician Stanisław Ulam and others, problem solving key steps in the nuclear physics involved in thermonuclear reactions and the hydrogen bomb. He developed the mathematical models behind the explosive lenses used in the implosion-type nuclear weapon, and coined the term "kiloton" (of TNT), as a measure of the explosive force generated.

After the war, he served on the General Advisory Committee of the United States Atomic Energy Commission, and consulted for a number of organizations, including the United States Air Force, the Army's Ballistic Research Laboratory, the Armed Forces Special Weapons Project, and the Lawrence Livermore National Laboratory. As a Hungarian émigré, concerned that the Soviets would achieve nuclear superiority, he designed and promoted the policy of mutually assured destruction to limit the arms race.