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About this site

Here we'll explore the various economic and financial principles that impact the business of technology, keeping up to date on the various ideas, theories, trends and numbers, dispelling the silly buzzwords, slogans and fads and generally trying to understand how recent developments affect this industry going forward and may help divine what's going on and where things may be headed. Among the topics we'll touch on: regulatory issues, intellectual property, network effects, the general economy, productivity and more.

About this editor


CORANTE

Arnold Kling has a Ph.D. in economics from MIT; founded homefair.com, one of the very first commercial websites, in 1994; separated from Homefair in January 2000 after it was sold to Homestore; is author of Under the Radar: Starting Your Internet Business without Venture Capital



and is an essayist. Please send any comments, as well as suggestions for what we might point to from this page, to us at econ@corante.com


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THE BOTTOM LINE: the economics of IT

By Arnold Kling


Posted Friday, September 26, 2003

The Undistributed Future

Brad DeLong bangs his head against the wall.

When book-fetishization, entrenched prejudices, and administrative neuroses run up against budgets, they will fall. Have every university press "publish" books that it doesn't believe will sell 2000 copies by putting .pdf files up on their respective webservers.

If all university presses did this tomorrow, the crisis in scholarly publishing would be solved--as would the difficulty assistant professors have in finding publishers.

We can move from the realm of necessity to the realm of freedom tomorrow, if we will just open our eyes and abandon our false consciousness. The High Energy Theory subfield of physics moved from journal articles to webservers as their principal locus of intellectual activity back in 1995. It's been nearly a decade since then. Why have the rest of us not followed them?


. . . . . .


Posted Thursday, September 25, 2003

Microsoft, Dominance, and Security

Presumably, y'all have seen this by now.

"The nature of the platform that dominates every desktop everywhere is such that its dominance, coupled with its insecurity, cannot be ignored and is a matter of corporate and national policy," said Dan Geer, a security consultant and chief technology officer of Stake, a computer security company.

...The authors said the report was a reflection of their own views and not necessarily those of the CCIA, an industry group of Microsoft's competitors that has a long history of suing the world's largest software maker.

As a buyer, I have a choice of what software to buy.  I would rather take the advantages of Microsoft software and live with its flaws than deal with the challenges of using Apple or Linux or Solaris or what have you (actually, when I was making decisions about servers, I went with Solaris).

Although the security experts are supposedly bashing Microsoft, what they are really doing is bashing me.  They are saying that because I contribute to the dominance of Microsoft, I make their lives more difficult, because Microsoft is a magnet for virus-writers.

If I believed their basic story (and I probably don't), then as an economist I would say that the solution is for the government to place a tax on the buyers of virus-prone software and use that tax to compensate ISP's and others that have to devote resources to fending off viruses.  If the tax ends up high enough, it could induce people at the margin to switch away from Microsoft.

But as long as we're putting a tax on people who increase risk in the system, why not focus on the most dangerous behavior?  The largest tax should be levied on people who fail to install patches.  Another large tax should be levied on people who open attachments without thinking.  etc.

If you don't like taxes, and you want to use a regulatory approach, then I don't think the solution is to force people to install Linux.  You could just tell Microsoft to cripple its email program in ways that would prevent viruses, and require individuals to obtain a license in order to uncripple it.

My point here is that this "dominance/security" controversy is horse hockey.  Dragging Microsoft down is the solution to one problem and one problem only:  the fact that competitors are not as successful as they wish they were.


. . . . . .


Posted Wednesday, September 24, 2003

Techies vs. Non-techies

It strikes me that the people who complain the most about Microsoft are techies, and the people that suffer most from the design of the operating system are non-techies.  My guess is that Microsoft listens to the wrong set of complaints--the ones from the techies.

Consider someone who only wants to use a computer for communication, word processing, and web browsing.  Suppose that they never want to download or install software.  Couldn't you build an operating system that would support those functions that would be crash-proof?

Five years ago, no one would have bought a computer with finite functionality.  Most households have at least one person who wants to play games or do programming or use something other than the comm-WP-WWW combination.  And five years ago, it was atypical for a household to have more than one computer.  And grandma and grandpa did not own a computer at all.

As long as the rule was one computer per household, the most techie person in the household drove the purchase decision.  That rewarded complex operating systems.

I think that today there might be a market for a robust comm-WP-WWW appliance.  There are a lot of consumers out there who should not be having to deal with re-starts, calls to customer support, etc.  Somebody should aim for that market.


. . . . . .


Posted Tuesday, September 23, 2003

Stock Options

I think that stock options are a crock.  Brian J. Hall and Kevin J. Murphy use polite academic phrasing.

When a company grants an option to an employee, it bears an economic cost equal to what an outside investor would pay for the option. But it bears no accounting charge and incurs no outlay of cash. Moreover, when the option is exercised, the company (usually) issues a new share to the executive, and receives a tax deduction for the spread between the stock price and the exercise price. These factors make the “perceived cost” of an option much lower than the economic cost.
...This insight provides a strong case for a requirement that options be expensed. The overall effect of bringing the perceived costs of options more in line with economic costs will be that fewer options will be granted to fewer people: stock options are likely to be reduced and concentrated among those executives and key technical employees who can plausibly affect company stock prices.


. . . . . .

Off-topic

In my latest TCS essay, I pose a few questions for Presidential candidates.  I get hung up on one of them.

Do you believe that the rifts within the United Nations indicate moral obtuseness on the part of (a) the United States or (b) other members of the UN?


. . . . . .


Posted Monday, September 22, 2003

Regulate Hardware, not Ether

I think that's what Kevin Werbach is saying.

The proper focus of wireless regulation is not the spectrum, but the devices that use it for communication. The property and commons regimes are just different configurations of usage rights associated with wireless equipment.


. . . . . .

Filing your email

David Gelernter's essay on email has this fun rant.

When I see people "cleaning up" their mail files, faithfully stuffing each message into a folder or otherwise file-clerking for a machine, acting as their computer's loyal (albeit menial) employee, I don't know whether to laugh or cry. (Laugh is usually the right answer.) Software should be doing this for you. That's why software exists. And of course nothing should ever be put in a folder; what if it's the wrong folder? Since when have you been so crazy about filing things, anyway? Such tendencies are treatable if they are diagnosed early. Otherwise you will grow up to be a bureaucrat, or already have. Folders and folder hierarchies have been obsolete for 15 years.

The essay concludes with his inevitable plug for the nonhierarchical filing system that he is developing.  But it's still worth a read.

 


. . . . . .


Posted Sunday, September 21, 2003

The Power of Feedback

I was without power for 60 hours, so I'm just catching up.  While I was out, TCS restored its comments functionality, and also published my essay on how to give useful feedback.

When you're in an echo chamber of people holding similar beliefs, then strong personal put-downs that question the sincerity and moral worth of your opponents work really well. However, in an open environment, those tactics fail.

Now, as soon as Hylton gets me switched over to Movable Type, you will be able to give feedback on my ideas about feedback, as well as any other rants that I post here.


. . . . . .


Posted Thursday, September 18, 2003

"Fixing" the Internet

Here are some suggestions.

"We are now at a pain point where we would contemplate solutions that are more involved than we would have imagined 12 months ago," says Leslie Daigle, chairperson of the Internet Architecture Board (IAB), an international nonprofit group that helps set policy for the self-governed, unregulated Internet.

The steps her group is advocating range from legislation that would let customers sue software companies over security loopholes in their products (by law, the industry is now largely exempt from such claims), to building new tracking systems that would make it impossible for even hackers to use the Internet without leaving a clear trail, to forcing everyone on the Net to put security protection on their PCs.

David Isenberg comments on some other suggestions.

Price discrimination in the middle of the network is a risk to new app discovery and to free speech. We should keep the network stupid -- and put the "for what" and "to whom" of price discrimination at the edge.

I really agree with the view that the intelligence on the Net should be on the edges.  What that means, however, is that you have to assume that there will be a lot of stupidity on the edges, as well.  What you cannot expect is to be able through legislation or centralized architecture to be able to make the Net idiot-proof.  As someone once said, there is no such thing as idiot-proof:  someone can always build a better idiot.


. . . . . .

Dissing Java for the Desktop

David Strom writes,

The Java desktop doesn't have to run over the network, but that is Scott's vision, and it is a flawed one. Look at all the stuff that you have to get working with your current suite of applications: Office (Sun has its own MS-compatible Star Office suite, which does a pretty good job of staying close to last year's version of what Bill's boys cook up.), Instant Messaging, reading Adobe Acrobat files, playing Real multimedia files and, of course, Web browsing and e-mail. That is a lot of stuff to keep current with the Windows family. Just buy a Mac, Scott.

That isn't to say the Mac is perfect, either. Many times, my Web-based apps just don't run on my Mac browsers

Microsoft software is flawed.  From the standpoint of many users, the competing software has flaws that are worse.  Reality bites.


. . . . . .

Paying the Copyright Tax

The copyright tax just keeps getting more and more expensive.  We have the resources being used up by the RIAA lawsuits.  And we have efforts like this one.

The DTCP specification, embodied in home networks, would permit consumers to play downloaded music or movies on any PC or digital device in the home. However, the downloaded material can't be transmitted outside the home or copied.

Of all of the ideas in the copyright wars, adding "crippleware" to hardware is the worst.  It maximizes the costs and minimizes the benefits. 


. . . . . .


Posted Tuesday, September 16, 2003

Da Man

A terrific interview with Milton Friedman.  Near the end, Friedman says,

I'd like to promote elimination of drug prohibition. I'd like to promote parental choice in education through vouchers. Those are two things I think are very urgent and important. They're both more important than the harm which Social Security will do.

I think that our policy with respect to drugs is fundamentally immoral and it's really disgraceful that we cause thousands of deaths in South America because we cannot enforce our own laws. If we could enforce our own laws against consumption of drugs, there would be no drug cartels in South America. There would be no -- nearly a civil war in a place like Columbia.

Similarly, I think the performance of our school systems is disgraceful. I think roughly a quarter of the population never graduates high school. We have a lower level of literacy today than we had a hundred years ago.

Read the whole thing.


. . . . . .

Evolution, Technology, and Terrorism

Randall Parker has a follow-up to my concerns about the potential of terrorism by a lone individual.

If we are going to be faced with growing threats from terrorism due to technological advances that make it easier to launch terrorist attacks of enormous lethality is there anything we can do about it? As I see it there are only about two major counters that can be used to sustain a defense in the long run:

  • A massive worldwide surveillance society. Sensors would be deployed throughout the world to watch for dangerous actions by individuals.
  • Reengineer human minds to make humans less dangerous.

I'm sure that people will not like Parker's conclusions.  But the warning should be taken seriously.  Sticking your fingers in your ears and saying "I'm not listening" is not the answer, either.

I think that some sort of surveillance society is inevitable, and the issue is one of control.  I don't think that control by a small elite is workable, and it is certainly not desirable.  I think that something like David Brin's "transparent society," in which surveillance information is accessible to everyone, is what we should be trying to think about and work toward. 

UPDATE:  More discussion, from The Speculist.


. . . . . .


Posted Monday, September 15, 2003

Why College Tuition is so High

I suggest two reasons:  aesthetics and inefficiency.  On the latter, I write,

My daughter's economic class was given by that distinguished lecturer, A. Warm Body, who seems to wind up teaching the majority of courses nowadays. With modern communication technology, this is inexcusable.


. . . . . .

Transparency and Patriot-ism

Marginal Revolution writes,

First, the credit card companies caved into government pressure and refused to process gambling related transactions. Initially, gamblers shrugged this off and routed their transactions through PayPal but a U.S District Attorney accused PayPal of violating the USA Patriot Act and to avoid charges PayPal was forced to pony up 10 million dollars. (Why am I not surprised that a law intended to go after terrorists has been used to most affect against peaceful gamblers?).

Any law that is passed in the name of stopping terrorism should be written so that it only applies to terrorism.  How hard is that to do?


. . . . . .


Posted Thursday, September 11, 2003

Grid Computing

is the great hope, if you believe Vint Cerf.  Or the great hype, if you believe Carly Fiorina.  It surprises me to say this, but on this one, I'm with the CEO, not with the godfather.  

Grid computing strikes me as a way to squeeze more computing cycles out of existing machines.  If that's a value proposition, then why isn't there a more active market in used computers? 

If you answer, "Moore's Law--the old computers aren't worth much compared with new ones," well...that's my answer on grid computing, too.  The administrative cost of tieing together old iron in a grid seems like a lot when you could just wait a while and buy new iron.


. . . . . .

I May Be Wrong, But

I have been pestering Hylton to add a "comments" feature to our blogs on Corante, and I have been pestering Nick to bring back the "feedback" feature on TechCentralStation, which got lost when they revamped the site.  (Nick promises that it is going to come back.)

I want to respond to the typical pushback I get when I extol the virtues of comments.

The comments hurt site performance, making pages load more slowly.

Then move the comments to a separate page, and run the comment database off a different server.  Moore's Law says that comments should not be a problem.

Comments turn into flame wars

I have a modest suggestion, which is to have the site automatically preface each comment with "I may be wrong, but,"  That is, If I write, "Virginia, you are an ignorant slut," my comment will be posted as, "I may be wrong, but, Virginia, you are an ignorant slut."

Brother Shirky of many-to-many says that software can make a difference in social climate.  I'd be curious to see if an innocent little thing like the automatic "I may be wrong, but, " preface might induce people to change the tone of their comments.  My hope is that it would encourage people to think about how to establish the validity of their arguments as opposed to how to dehumanize their opponents.

But even if flame wars break out, I think that a flame war is healthier than the silence that is enforced by not allowing comments.


. . . . . .


Posted Wednesday, September 10, 2003

Odlyzko on Boom-Bust in Telecom

Any time Hylton sends me a link to something by Andrew Odlyzko, if I haven't already seen it, I'm bound to post it.  Here, he says that the cycle in telecom will turn around at some point.

”Telecommunications will continue to grow faster than the economy at large, maybe twice as fast,” said Odlyzko. He believes that new technologies such as Ethernet, VOIP, and file-sharing will continue to prosper.

I also think that non-human communication is going to be important--sensor networks, RFID's, and whatnot. 


. . . . . .

Free Agents vs. Grey Flannels

Glenn Reynolds describes the differences.  He concludes,

most people who are self-employed, in my experience, tend to like it. Most people who work for big organizations don't. So it may be that, overall, job satisfaction will be higher. I hope so. Because, for good or for ill, I think that this is the trend. And I think that it will be for some time

And I think that ultimately even college professors will not be able to enjoy the combination of a regular paycheck and almost complete autonomy.  They'll have to join the rest of us in Real World 101.


. . . . . .


Posted Monday, September 8, 2003

Portalization of Weblogs

Here's a "social software" type of theory:  as popular weblogs age, they will become portals.

In the early days of the Web, back when there were about 1000 sites, I started homefair.com.  It had my personal voice, and it had broad content--interest rate information, housing information, and so on.

As the Web expanded, this model became untenable.  You cannot be top quality at everything, and a better site is always one click away.  Because homefair was early and built up a following, we eventually evolved into a portal.  Our own content became less essential to our success, and our links out became more important. 

My point is that I think that weblogs are headed down the same track.  People who have longstanding weblogs who want to keep their following will find that they have to behave like portals.  That is, they will have to become very rich in links, and reduce their self-expression (or express themselves by the way in which they select links).

If you want to express yourself heavily (as I do), and you want a large following, then I think you will have to progressively narrow your scope.   People will come to you for your area of expertise, not for stuff that they can find just as easily elsewhere. 


. . . . . .

Voice over IP

Kevin Werbach is your (or at least my) Voice over IP headquarters.  Today, he links to a depressing story about a state regulator in Minnesota who is determined to "level the playing field" with the Baby Bells by subjecting VOIP to the same regulations.  A couple of points I would make.

1.  The story shows that there are still important people out there who do not see that where we are headed is what the Reed, Frankston folks call "connectivity," as opposed to services like "voice" or "TV."  Nicholas Negroponte said at least a decade ago, "bits are bits."  Is it too much to ask a regulator to have acquired a clue by now?

2.  To me, this makes a total mockery of what Kevin Martin forced the FCC to do about local telephone network facilities sharing, which is to let state regulators set the terms and conditions.  That puts power into the hands of the most stupid, corruptible people in the whole process.  I give you this Minnesota gopher as exhibit A.

All you geeks out there who are working so hard to elect Howard Dean should realize that once the Democrats get control of the FCC again, the "world of ends" is toast.  It will be world of clueless suits, bumbling cross-subsidizing do-gooders, and kiss-my-ring regulators. 


. . . . . .

Taxing Hardware to Eliminate Copyright?

One approach to the copyright issue is to levy a tax on hardware and distribute the tax proceeds to copyright owners.  Canada does this with blank tapes.

Stan Liebowitz takes a dim view of the hardware tax approach.

A compulsory license system throws out the markers, the lighthouses if you will, that can help guide the prices in these markets. A compulsory license regime requires that prices and revenues be set in some arbitrary manner. Setting prices and revenues are the very questions that any economic system answers by its choice of rules.

He raises some important points.  Which hardware do you tax?  If you tax tapes but not computers or MP3 players, then people will just stop using tapes.  If you tax computers the same percent as MP3 players, then people who never download music will be subsidizing people who download a lot.  etc.

Which content creators receive the tax revenue?  The ones who get the most downloads?  That would seem to favor music that a lot of people like a little bit, at the expense of music that a few people really like a lot.

On the other hand, he puts in a good word for digital rights management (DRM).  DRM is a tax with no beneficiaries.  It raises the cost of hardware and software, without making any more money available to pay content creators. 

I know that there is no perfect solution, and we can go round and round on this.  But I am convinced that DRM takes you in the direction of the social welfare minimum. 

I like Odlyzko's solution.  Let the phone companies buy the music companies--or let them license the music.  Or let Intel buy the music companies--and while you're at it, let Intel license enough spectrum to make wireless mesh networking function really well.  Intel can use the music to raise demand for its chips in products that are on the network, and they can allocate some of the revenue from chip sales to pay music creators.

Thanks to a reader for alerting me to the Liebowitz paper.


. . . . . .


Posted Sunday, September 7, 2003

Darwin and Terrorism: Missing the Point

A Foreign Policy article on evolution and terrorism that seems weak to me.  I mean, this is true enough:

Likewise, meeting today's diffuse terrorist threats requires fast, flexible crisis management. Putting homeland security in the hands of a massive, plodding bureaucracy hardly represents evolutionary advancement.

But to me, the interesting question is this:  assume you can make state-sponsored terrorism extinct.  Then what kind of terrorism will survive?

I think that survivors will be splinter groups, rogue operations, and individuals.  As of now, that is less of a threat than a large network.  But the power of the individual keeps increasing as technology increases.  Eventually, we are going to have to develop the capability to identify and thwart a lone terrorist with no connections to anyone.


. . . . . .

Want More People to Use Mass Transit?

Brad DeLong reports on a conversation in San Diego.

"Why not drive all the way?"

"The UCSD shuttle bus is wireless-internet-enabled."


. . . . . .


Posted Friday, September 5, 2003

Restructure the FCC?

A weird opinion piece in the Washington Times about the FCC, from a former associate general counsel there.

It is appropriate, indeed desirable, for the American people to debate media ownership policy and to make their views known. And, of course, the commission solicited public comment in official comment rounds. But when the FCC is urged to formulate policy based on the number of e-mails received and picketers marching, as it was explicitly urged to do by many in the media ownership proceeding, our conception of the agency's role necessarily will be altered. If these electioneering-style tactics become more common, the idea of substantive deliberation informed by agency expertise surely will suffer.

Get over it.  I happen to disagree with the emailers on substance--I am in favor of the new media ownership rules, or at least I don't think they will cause any harm. 

But if you think that their tactics are egregious, but lobbying by K Street lawyers isn't, then...*&(#!*# you!  GET OVER IT.

Within the executive branch, a single-headed agency would at least be politically accountable to the president. Recall when the transportation industries were freed from economic regulation and the ICC and CAB abolished, remaining functions, such as safety regulation, were transferred to the executive branch.
    In truth, even putting aside questions relating to the legality of "independent" agencies existing outside of the Constitution's tripartite structure, the Progressive-era ideal of extrapolitical, independent bodies running mainly on high-octane expertise was never was very realistic.

Actually, some "independent" agencies work very well, thank you very much.  Ever heard of the Federal Reserve?  the FDIC?

But I think that you may be onto something.  The key is deregulation.  If somebody wants to abolish a lot of FCC functions that have been made obsolete by new competing technologies, and THEN transfer the remaining functions to the executive branch, then fine by me.


. . . . . .

More Clay

Shirky on the new economics of content.

For an author to be famous, many people had to have read, and therefore paid for, his or her books. Fortune was a side-effect of attaining fame. Now, with the power to publish directly in their hands, many creative people face a dilemma they've never had before: fame vs fortune.

Economists would then ask, how does quality get sorted out?  The Shirky's answer would be "collaborative filters."  Not the only plausible answer, but a reasonable guess.  He goes on to say that

Free content is thus what biologists call an evolutionarily stable strategy. It is a strategy that works well when no one else is using it -- it's good to be the only person offering free content. It's also a strategy that continues to work if everyone is using it, because in such an environment, anyone who begins charging for their work will be at a disadvantage.

Economists call this a Nash equilibrium.

Anyway, as usual, read the whole thing.


. . . . . .


Posted Thursday, September 4, 2003

Painfully Cheap

Brad DeLong points to a post by John Robb on digital cameras.

when does the market run out of gas (product differentiation) and move to pure price competition? 

...I suspect we will see the first reusable 7 MP digital camera available for under $20 in five years.

But digital cameras are a pain at any price.  My wife and I are old fogeys, so we think of pictures as things that you hold onto for a long time so that you can look at them later.  Getting pictures from a digital camera to a photo place to print makes programming a 1985 VCR seem trivial. 

Some friends of our have a son who just graduated college and spent 6 weeks traveling in Europe.  He came back with 3000 pictures on his laptop, which he gave to his mother to sift through.  "I narrowed it down to 600," was the last I heard from her.

Computer printers for the home have gotten really cheap.  But they take forever to print.  And you have to watch the printer constantly to make sure that the paper does not stop feeding.  It's a major project printing out one copy of notes for a class, which I then have to take to a copy machine, because there is no way that I am going to baby-sit my computer printer while it makes 15 copies.

To paraphrase the credit card commercial:  cost of a digital camera or a home printer--cheap; ability to manage photographic memories or to prepare for a class--priceless.


. . . . . .


Posted Wednesday, September 3, 2003

Just Answering

Is the purpose of BloggerCon to con bloggers?  (just kidding)

Anyway, for some reason Dave Winer thought that the blog for the conference would be a good place to post these questions for Presidential candidates:

[I'll add my answers in brackets.  Even though I'm not running.]

1. Should the United States have a health care system like the ones in European countries and Canada?

[no]

2. What's your position on the death penalty?

[unequivocally opposed]

3. Abortion?

[no government prohibition.  Morally, though, I think that abortion ought to be only used early in pregnancy as an unconditional form of birth control.  It should not be used as a way to dispose of babies with birth defects.  Regardless, I would not try to legislate my moral views.]

4.  Did Bush lie about weapons of mass destruction in Iraq?

[I don't think so.  I expected that it would be easier to find WMD after the war, but I do not feel misled or lied to.] 

Does it matter? 

[If I thought that I had been lied to, it would matter a lot.] 

Was the war in Iraq a good idea?

[Yes.  But long-term consequences are hard to predict.  In the 1960's, I thought that Communism would be good for Viet Nam, and I no longer believe that.  I think that regardless of how you feel about the war in Iraq now, you have to be prepared to change your mind depending on how things turn out over the next decade.]

6. If you were President, would you have settled with Microsoft for antitrust?

[Yes.  Microsoft is flawed, but government regulation would not necessarily make things better.  And antitrust laws are very clumsy instruments of regulation.  The anti-trust controversy is a fight between one flawed company and other flawed companies, with the consumer not having a horse in the race.]

7. Why is it illegal to use or possess marijuana?

[Because of laws which I oppose]

8. How do you feel about music on the Internet? What, if anything, should the President do about it? Congress?

[Do less to protect the music industry.  Send their lobbyists away, and make them compete on technology.]

9. Do you have an email address? Do you read your own email? What should we do about spam?

[I worry about solutions that cost more than the problem.  I worry about passing laws that cannot be enforced or that make things worse.  I hope that engineers, software developers, and others in the private sector come up with a solution.]

...

11. How do you plan to get us out of this Steinbeckian-Grapes-Of-Wrath economy? From Halley.

[The facts simply will not support the thesis that we are in such an economy.  If I sent you through a time machine back to the 1930's and put you in the 90th percentile of the income distribution, you would soon beg to come back to live in the 25th percentile today.]

12. What do you think about school vouchers?

[They are a plausible but unproven approach.  They ought to be given an opportunity to succeed or fail.  A number of different voucher experiments, with various rules and approaches, ought to be tried.]

How can public education in the U.S. best be improved?

[by giving parents more say.  Vouchers could be one method, but reducing the size of school districts and the strings associated with Federal and state funding is another.]

 


. . . . . .

Manufacturing Crisis?

I take a cynical view of President Bush's Labor Day pronouncement.  So did Daniel Gross and Steve Pearlstein.

Meanwhile, Glenn Reynolds says that cottage industry is the wave of the future.


. . . . . .


Posted Tuesday, September 2, 2003

Roofnet

This bears watching.

MIT’s Roofnet, a project to create a self-organizing wireless network in which an amorphous, unmanaged collection of cheap Linux computers equipped with Wi-Fi cards collaborate to efficiently route data packets. Each computer and roof-mounted antenna at students’ apartments and MIT buildings is a node on the network and the arrangement in which they are connected to each other—the topology of the network—is constantly changing.  “We want to understand how a whole bunch of computers with short-range radios can self-configure a network, forming order out of chaos,” says computer science professor Robert Morris, who coordinates the project. The network has now more than 30 nodes in a 4-square kilometer area surrounding the MIT campus. “We hope to reach a hundred nodes within a few months,” he says.


. . . . . .

Dubious Predictions

From Forrester Research on the future of music and movies.

The research firm said music companies and studios are realizing that they must create new channels for online delivery. Consumers, tired of paying high prices for CDs and DVDs, are looking for flexible forms of on-demand media delivery.

Forrester says that the media industry is finally willing to look at the Internet as an opportunity rather than a threat, and I hope that this is true.  But I am skeptical of any study that forecasts a big market for movie video-on-demand.  That forecast has been made wrongly for years, and it continues to defy the fact that hard disk space is increasing faster than bandwidth.

I think that the correct answer to the question, "When will video on demand become mainstream?" is "Never."  By the time we have the bandwidth to make it work, we will have hard drives capable of storing all the movies ever made.  Maybe people will download brand new movies--but it also could turn out that they obtain updates to their movie collections via physical media.


. . . . . .

Strange Tales from the Spam Wars

The spam wars are getting weirder.  Folks like Joi Ito are finding their email blocked by SpamAssassin.  Dan Kohn has helped found a company called Habeas, that creates a header that supposedly is a promise not to spam.

I think that the idea of either-or email delivery (it either must be sent as plain text or it must be sent to one person at a time) is looking better.


. . . . . .

Push to Talk

Thanks to the ever-vigilant Smartmobs blog, a pointer to an article on push-to-talk.

When you push the PTT button, you see the list of your PTT contacts. Using up and down arrow keys, you highlight the individual or group you want to call. Then you push and hold the PTT button, wait about two seconds for a beep that confirms the connection, and start talking.

At the other end, everyone in your group hears a notification beep and then your voice. If the V60p is set in speakerphone mode -- recommended for PTT communication -- you'll be heard clearly even if the phone is clipped to a belt or purse strap.

Will this mean more cultural divergence between the U.S. and Europe/Japan?  The economics of cell phones in other countries still favor text messaging over voice. 

Also, my thinking is that cell phone communication is a bit of an anachronism in the Internet age.  Proprietary systems, circuit-switched calls, etc.  At what point will we convert to voice over IP?

Anyway, I think that PTT is something to watch.


. . . . . .









Copyright 2002-2003 Arnold Kling. All rights reserved. Terms of use


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