When we measure human intelligence, we use IQ tests. When we measure computing power, we count operations per second. But how do you measure the intelligence of something bigger and stranger, like a corporation, a city government, or an entire economy? Herbert Simon spent his life answering this question, though he never put it quite […]
The IQ of an Effective System According to Herbert Simon Read More »
The Story We Tell Ourselves About Regulation When you think about regulations, you probably imagine stuffy government bureaucrats protecting you from dangerous products or crooked businesses. That mental picture makes sense. After all, that is what we learn in school. Regulations exist to protect the little guy from the big bad corporation. They keep our
George Stigler’s Razor: If a Regulation Exists, Someone is Making Money Off It Read More »
In the cutthroat halls of Renaissance Florence, Niccolò Machiavelli observed a peculiar pattern among those who survived political intrigue versus those who ended up exiled, imprisoned, or worse. The survivors, he noticed, rarely charged headfirst into uncharted territory. They waited. They watched. They let others test the waters, and only when the coast proved clear—or
The Machiavelli Rule on Innovation: Never Be the First to Implement a Dangerous Idea Read More »