When I discuss Hayek's brilliant "The Use of Knowledge in Society" in my MBA class, I try to relate it to their professional concerns by discussing prediction markets. I give a couple of examples of companies using such markets and I even suggest that they--the MBAs--should pursue the idea with their employers.
But Tyler Cowen observes that businesses don't seem to be using them widely yet and he offers some conjectures why. The post draws some interesting comments, too.
Another part of my lecture notes that will have to be changed. Sigh.
In a broader discussion, what companies and industries have used the information provided by the new technologies the best and who has not used it? I would say off the top of my head that transportation industries have not done a good job with the new advancements in information collection and the internet. Automobile companies are also lagging behind. Retail in general has done a good job, and so has banking, insurance, and utilities.
Could the Resturant market gain a leg up by utilizing the internet ? I can envision a system where you pick your meals ahead of time online. Or how about this? You step into a nice resturant in New York and go to a preasigned booth. You then dail up the online adress of another nice resturant in Houston where your old friend or business partner is having dinner. Large plasma screens at the end of each table broadcast your images and voices to the other resturant so that you are having a virtual dinner date together.
Damm I wish I had the capital to start something like that!
Posted by: Kyle N | March 31, 2006 at 06:04 PM