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The Resistance to a New Business Model in the Economy.

June 11, 2014

By now I have enough evidence to show  that there is resistance by economists, economic departments in Universities, curriculum committees and the rank and file of  businessmen to psychologists joining the movement to modernize economics and finance. I suggest that PhD candidates study the reasons. I think they are fear of turf invasion, dislike of psychologists meddling in consumer-retailer relationships, conservative attitude about renovation,  and above all a sacred belief in Smithsonian economics as perfect. The Wealth of Nations has become a Bible.

I presented 3 papers at 3 universities in the last 3 years to experience the subtle resistance to improving the sacred old economics in the market place. Adam Smith wrote The Wealth of Nations on the rational relationship between Capital, Labor, Resources and Management (CLRM). Psychologist Dr. Kahneman discovered in 2002 that the relationship was not rational but behavioral. I discovered what was missing in 2011. I wanted to bring the old Smith model up to modern times by adding 2 more variables to the old 4 CLRM. The subtle resistance to the new business model became visible.

My behavioral theory of consumer-retailer relationship didn’t see the light of day in Europe. My paper at UCLA how economists curtailed the power of behavioral economists for 70 years in the 20th century made no waves. In a group of 30 attendees only one graduate students from China asked a question. My introduction of behavioral economics as a discipline at the University of Valencia, Spain was exciting to me, 2 out of 30 attendees asked questions. Finally, my paper introducing the complete new business model adding the social media variable interacting with the Technology variable in shaping future economics was accepted for reading at the university of Rome, but to my great disappointment no one challenged my model, no one asked questions, and so far my presentation has no follow-up.

Most presenting professors who make the effort to travel are financed by their universities and their research is fully supported. I am retired and each presentation I do at a university cost me about $10,000.00, including travel and all expenses. I pay my way because I care about the poor and I want to change marginal economics. At that level of dedication that I have to my new model of economics I expected more support in Europe and America. I perceive the indifference as resistance to change. This posting is a feeling posting for me because I truly believe that Adding the 2 new variables, Social Media and Technology to the old traditional 4 CLRM would have given a model impetus to eradicate poverty, crime and unemployment in the world. Oh, well, you can’t win them all!

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