- 27 Mar
The Knowledge Problem
Excerpt from the paper: Economics, Technological Change, and the Knowledge Problem. Faster computers allow us to process more data, and to carry out more analyses than has been possible up until now. But every problem to be solved includes information that is simply not available, or available only at a cost that itself impacts the choice under consideration. Beyond this point further information is of little value. Mining and many other industries reach this point relatively early in the decision process. A particular project might be quite viable, but current information might be subject to a lot of uncertainty; additional data gathering, research, and testing might reduce the uncertainty to an acceptable level, but the cost of undertaking this additional data gathering, research, and testing might then make the project unviable.
The Knowledge Problem was discussed as part of a paper by Ian Runge in 1995 entitled: Economics, Technological Change, and the Knowledge Problem.
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