Ignorance is Strength

Thomas Friedrich

MPRA Paper from University Library of Munich, Germany

Abstract: The model transfer space explores how substrate transfers impact the net profit of a source and sink, and the superadditivity or subadditivity of their ensemble. The three coordinates of the transfer space are the substrate concentration in source and sink and the net profit of the ensemble of both. Net profit is the difference between a non-linear benefit function of the substrate concentration and a linear cost function of the substrate concentration in source and sink. Superadditivity and subadditivity emerge in specific areas of the transfer space when comparing the results of a transfer to no transfer. When an object is transferred from source to sink, it possesses a visible exterior and a hidden value, the latter being a substrate quantity. The amount of substrate and the size of the value are correlated. However, the outward appearance need not correlate with the value of the content. In such a case, if the content´s value is smaller or larger than expected, the result of this ignorance is new activity or inactivity in certain areas of the transfer space or the positive net profit subspace. This will create or miss additional superadditivity and subadditivity for the ensemble. A simple pattern emerges. Source ignorance and collective ignorance dominate when value is overestimated. Sink ignorance and complete information dominate when value is underestimated. Ignorance can indeed be a collective strength. A lack of knowledge - whether intentional or inadvertent - of true value has an effect similar to deception or brute force.

Keywords: source; sink; ensemble; value; overestimation; underestimation; inflation; deflation; information; symmetry; asymmetry; superadditivity; subadditivity; Cantillon effect; deliberate ignorance (search for similar items in EconPapers)
JEL-codes: Z0 (search for similar items in EconPapers)
Date: 2024-11-05
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