There are so many terminologies in bubblegen that confuse people , some of them are standard terminologies ( known pretty well in economics or strategy literature) but some how of them are new coinaage. I am going to list down some of these terminologies and attempt a definition to those , so that other beginners can grasp it easily. ( Umair & other expert readers please add in to make addition/correction)

(Btw umair you can choose to keep this page or remove it as you would know that page slashes entry barrier to access your consultancy :D )

• 'Innovation' - Economic value creation. (another opinion: I don't agree with the definition here. I had a lecturer in a recent course who was a product design veteren from 3M, and he said: "An innovation must be an actual new occurence of something, almost like a new species"... he also challenged us by asking: "Who thinks it is possible to have an innovative thought?"... I said "yes"... to which he replied, "No"... "A thought is at best a plan... to be an innovation it must exist, and must not have existed before, it must be inherently new" - I like this fussy definition.)
  

• 'Recombinative Innovation' is the reorganization of capital into value-generating structures that attract further capital and contribute to positive feedback mechanisms and agglomeration effects. This force is responsible for the patterns of self-sustaining growth associated with high-impact, economic clusters such as Silicon Valley and Route 128.

• 'Radical Innovation'

• 'Property Rights' - Property rights are what you can do with a good or asset. Can you sell it? Can you extract value from it? Can you subdivide it? Generally, three kinds of property rights are delineated. Use rights – the right to use (and stop other from using) a good; income rights – the right to earn income from a good; and exchange rights – the right to transfer (or sell) the right to another party. ( modification rights is fourth one)

• 'Plasticity' - the ability to arbitrarily unbundle and rebundle resources

• 'Liquidity' is a term used in relation to market where it refers to the ability to quickly buy or sell a particular item without causing a significant movement in the price. An elegant definition of liquidity is the likelihood that the next trade is executed at a price equal to the last one. A market is more liquid if there is less friction in execution of a transaction.
  

• 'Blur'

• 'Knowledge Pool'

• 'Externality' can be broadly defined as effects external to a transaction that one party imposes upon another – such as pollution from a factory, or the overfishing of a stream. Externalities often arise because of transactions costs. This is because if transaction costs were zero, the harmful effect could be negotiated away, by simply trading property rights

• 'Opportunity Cost' - the concept of opportunity cost as one of the very few profound "eternal truths of economics," a result of the universal nature of scarcity as the Economic Problem. It is the cost of something in terms of an opportunity foregone (and the benefits that could be received from that opportunity), or the most valuable foregone alternative. Opportunity cost is not the sum of the available alternatives, but rather of benefit of the best alternative of them.

• 'Transaction Cost' - In economics and related disciplines, a transaction cost is a cost incurred in making an economic exchange For example, most people, when buying or selling a stock, must pay a commission to their broker; that commission is a transaction cost of doing the stock deal. Or consider buying a banana from a store; to purchase the banana, your costs will be not only the price of the banana itself, but also the energy and effort it requires to travel from your house to the store and back, and the time waiting in line, and the effort of the paying itself; the costs above and beyond the cost of the banana are the transaction costs. When rationally evaluating a potential transaction, it is important not to neglect transaction costs that might prove significant.

• -'Hypercompetition'

-'HyperCommoditization'

-'HyperImitation'

-'HyperBranding'

-'Zero Sum' or 'Power Laws'

-'Replication Economy'

-'Simulation Econony'

-'Post Effecient Markets'

-'Post Networks Era'

-'Post Brands Era'

-'Coordination Economy'

-'Viral Economy'

-'Dot Com 2.0'


Some terms that are not standard usage that are used in the blog which would be a lot clear through a definition.



'Information' is data that has value.

Value driver

Value chain atomization

Interconnectivity

zero Intelligence Corporation

Post-Branding

Social Engineering

RIP effect

Aggergators vs Reconstructors

Connected Consumption

Distributed Economies of Scale

Coordination arbitrage


Some terms which are standard terms (in econ or mgmt) but have no easy access(or vague & confusing) to definition in general.

Value (a definition of this will help many make sense of the post on Carr)

Use Value & Exchange Value

Price & Price Discrimination

Competence - It is learning ( mostly organizational learning)

Core competence - It is based on cheap information, kind of agglomeration of information into something unique. If information is cheap then what is valuable is specialization.

Competency Trap

Multilateral contracts

Rents (Schumpeterian)

Innovation

Vital Point ( this is not a standard term, this might need to be standardized in literature in near future)

Two sided Markets - Difference between , markets & two way markets. Two side markets have indirect network effects. Further Reference to seminal paper by Tirole.. http://faculty.haas.berkeley.edu/hermalin/rochet_tirole.pdf


Platform Economics

Simulcra (Simulation Economy)

Comparative Advantage - (This is a standard & age old concept but difficult even for many econ prof to understand it correctly, also included is the related concept of 'oppurtunity cost')

Signalling

Fat Tails




Models used that are not understood well by many

- Indirect, Direct network effects & pecuniary externalities ( Used in Google Research Note)

- Knowledge of "Property Rights by Coase & its further development by Demesetz" is something that is implicitly assumed in the peer production ppt and I am not sure many would have understood it well , though you have given an extensive treatment on this in the 4 property rights article. Especially the concept/idea that Property rights rise to internalize externalities and how it gets redefined when the modes of production undergoes a fundamental change(Marx).

- The model behind combinatorial law(haque) needs an explanation of why it is combinatorial ,for ex reed's law explanation is that it
summation(nC1..nCn) = 2^n.



Rajan
http://rajan.wordpress.com