cmn midterm 1 - According to Carlota Perez"bubbles are...

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According to Carlota Perez, "bubbles" are always bad. 1.Yes, because they create tension between the paper and the real economy 2. No, they create super rich innovators which is important for innovation 3,Yes, because they create tension between the size and profile of effective demand and those of potential supply O4. No, they also provide the conditions for full expansion of the new paradigm Before there were cars, there were no gasoline stations and gasoline pumps. However, this became a major industry and a signature of the landscape of our modern times (think about how often you see them...). From the perspective of the technology we call automotive, which step of the 6 consecutive stages of Arthur's "core mechanism" of technological evolution best describes this phenomena. O 3. Supporting technologies & arrangements 6. Social & economic adjustments 5. Becoming potential building-block 2. Replacing 1. Entering 4. Replacement of previous ancillary sectors Brian Arthur argues that the number of available technologies grows exponentially because: O1. Combinatorics are mathematically exponential 2. People want more and more diverse technologies 3. Companies and Venture Capital markets invest ever more in R&D (Research & Development) Brian Arthur talks a lot about how technologies evolve by a process of "self-creation". By that he means that O1. new elements are constructed from ones that already exist, serving as building blocks for further elements 2. human create technologies themselves, as technologies cannot come out of nowhere 3. technologies armed with artificial intelligence can create themselves Carlota Perez claims that the "Age of Information" is not only the latest

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