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An Economic Model of Ranked Information and "Big Picture"

Author

Listed:
  • Harashima, Taiji

Abstract

Understanding the "big picture" is crucial for success in business, but why? In this paper, I develop an economic model of understanding the "big picture" based on the concept of "ranked information." With the model, I demonstrate that an expanded "informational field of view" allows for more accurate ranking and selection of crucial information, thereby increasing the probability of achieving objectives and enhancing productivity. Conversely, a narrower focus can potentially lead to more frequent errors in business dealings, resulting in significant economic inequality. Furthermore, I show that providing education to a large segment of the population can enhance an economy's productivity by widening individuals' informational fields of view.

Suggested Citation

  • Harashima, Taiji, 2026. "An Economic Model of Ranked Information and "Big Picture"," MPRA Paper 128862, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:128862
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    File URL: https://mpra.ub.uni-muenchen.de/128862/1/MPRA_paper_128862.pdf
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    References listed on IDEAS

    as
    1. Aaron S. Edlin & Joseph E. Stiglitz, 2008. "Discouraging Rivals: Managerial Rent-Seeking and Economic Inefficiencies," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 609-620, Springer.
    2. Grossman, Sanford J & Stiglitz, Joseph E, 1980. "On the Impossibility of Informationally Efficient Markets," American Economic Review, American Economic Association, vol. 70(3), pages 393-408, June.
    3. Joseph E. Stiglitz, 2017. "The Revolution of Information Economics: The Past and the Future," NBER Working Papers 23780, National Bureau of Economic Research, Inc.
    4. Harashima, Taiji, 2022. "Asymmetric Information and Ranked Information Are Equivalent in Making Information Utilization Heterogeneous," MPRA Paper 113576, University Library of Munich, Germany.
    5. Bruce C. Greenwald & Joseph E. Stiglitz, 1986. "Externalities in Economies with Imperfect Information and Incomplete Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 229-264.
    6. Harashima, Taiji, 2009. "A Theory of Total Factor Productivity and the Convergence Hypothesis: Workers’ Innovations as an Essential Element," MPRA Paper 15508, University Library of Munich, Germany.
    7. Harashima, Taiji, 2012. "A Theory of Intelligence and Total Factor Productivity: Value Added Reflects the Fruits of Fluid Intelligence," MPRA Paper 43151, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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