Knowledge Economics: Summary and Rationality

Abstract

It will be shown that a satisfactory way to look at an economy is to understand the concept of energy costs and use knowledge, and then appreciation of knowledge economics is at hand. One can then grasp the concepts of knowledge economics as their roots are in the major properties of information to see how knowledge behaves, the concept of time and knowledge that needs to be grasped to appreciate economics, to appreciate a phenomenon of the universe, to appreciate what is happening as some societies develop further and others remain stagnant except for a core elite around government. The paper concludes with a thorough analysis of rationality and utility giving our understanding of information and probability, and how rationality allows us to view economic models from the view of knowledge economics giving the properties of information. Our view of economics significantly determines how we treat others; thus our view of economics must be made with all the available information.