Paul Kedrosky:

There are huge cross-currents on the Microsoft/yahoo deal after this week's earnings news from the two companies. What we discovered, in effect, was that what we have here are two drunks holding each other up.

Microsoft/Yahoo: Dead? Dithering? Drunks?

Data governance entails a universe of concepts, principles, and tools intended to enable appropriate management and use of the state’s investment in information. Part I on data governance presents an introduction that describes the basic concepts. Governance, and particularly data governance, is an evolutionary process. It begins with an understanding of the current investment and then manages that investment toward greater value for the state.

Managing Information As An Enterprise Asset

Guillermo del Toro is directing "The Hobbit" and its sequel, New Line Cinema announced Thursday. The 43-year-old filmmaker will move to New Zealand for four years to make the films back-to-back with executive producer Peter Jackson.

Guillermo del Toro to direct 'The Hobbit' and sequel

Is this the silver lining to the global food crisis?

It seems the message is finally getting through. In parts of Helmand Afghan farmers are this year sowing wheat instead of poppy - not because they have suddenly been converted to the argument that producing heroin is not in the national interest.

Market forces have been the deciding factor - with wheat prices doubling in the past year, and the street price of heroin falling, it is now more cost effective to grow wheat.

At last there are signs of progress being made amidst Afghanistan’s battle-scarred landscape.

Afghanistan swaps heroin for wheat

Consider the case of aspirin. Suppose, for the sake of argument, that Bayer aspirin and store brand aspirin are identical products, but that Bayer costs twice as much because some consumers believe (falsely, in this example) that Bayer is better. Would we expect markets to eradicate this price difference? Since the Bayer brand name is trademarked, it is not (legally) possible to go into the business of buying the store brand aspirin and repackaging it in Bayer bottles. This inability to transform the store brand into Bayer prevents one method arbitrageurs might use to drive the two prices to equality. Another possibility for arbitrageurs would be to try to sell the more expensive Bayer aspirin short today, betting that the price discrepancy will narrow once the buyers of Bayer “come to their senses.” Short selling works like this: an arbitrageur would borrow some bottles from a cooperative owner, sell the bottles today and promise the owner to replace the borrowed bottles with equivalent Bayer bottles in the future. Notice that two problems impede this strategy. First, there is no practical way to sell a consumer product short, and second, there is no way to predict when consumers will see the error in their ways. These problems create limits to the forces of arbitrage, and in most consumer goods markets, the Law may be violated quite dramatically.

The aspirin example illustrates the essential ingredients to violations of the law of one price. First, some agents have to believe falsely that there are real differences between two identical goods, and second, there have to be some impediments to prevent rational arbitrageurs from restoring the equality of prices that rationality predicts. Can these conditions hold in ? financial markets, where transactions costs are small, short selling is permitted and competition is fierce?

The Law of One Price in Financial Markets

Does being on the Colbert Show really provide a bump—a critical leap that vaults a writer, or a politician to superstardom?

The Colbert Bump is Real

Corporate prediction markets work like this: Employees, and potentially outsiders, make their wagers over the Internet using virtual currency, betting anonymously. They bet on what they think will actually happen, not what they hope will happen or what the boss wants. The payoff for the most accurate players is typically a modest prize, cash or an iPod.

The early results are encouraging. “The potential is that prediction markets may be the thing that enables a big company to act more like a small, nimble company again,” said Jeffrey Severts, a vice president who oversees prediction markets at Best Buy, the electronics retailer.

Betting to Improve the Odds

In this fast paced, modern world there is a lot to keep up with, I can help you.

Personal Digital Shopper Available

Corporations rely on specialisation, outsourcing and tacitness. Specialisation is here to manage complexity, outsourcing here to evacuate complexity and tacitness here to hide complexity. It is not perfect. Specialisation impeaches getting the big picture. Outsourcing concretely relocates knowledge out of the organisation. Tacitness prevents management as "you can't manage what you can't measure" and favours egocentric "political" games. Besides those defaults, it offers managers a simple life (and very similar to the one of a Museum keeper).

Specialisation is a natural result of complexity. In organisations, the diversity and recurrence of tasks call for dedicated people to limited actions. The bigger the organisation, the more specialised employees are.

The Museum and the Zoo

NOW added to the endangered species list in New York City, along with independent booksellers and shoe repair: the neighborhood record store.

As Problems Mount, Record Stores Find It Increasingly Hard to Stay Open