We (and techno too) need our CHIEF ECONOMIST…… the quantitative power. Meet the market shapers
A new breed of high-tech economist is helping firms crack new markets
MOCKING economists is easy sport.
But at a turning point the herd tends to be wrong. Economics is evolving, with a mission to solve firms’ real-life problems at its heart
Divining hidden “types”—the buyer and the browsers, the content and the disgruntled—is a common challenge in the new realm of economics. The reason is that new firms are often platforms on which buyers and sellers meet. LinkedIn (workers and employers) and Accretive Heath (doctors and patients) did a similar thing. In all these outfits, knowing more about a customer’s type can help the platform suggest a better link.
Machine learning is not as scary as generations of science-fiction writers have made it sound
In adapting products to match supply and demand, this new breed is injecting economics into the structure of Silicon Valley firms. While they are too busy to realise it such firms are also providing the best defence of economics against its critics. Far from being unrealistic and out of touch, the role of chief economist will design the way that the firm works.