Macroeconomics is a phony construct designed to provide a vehicle to justify government intervention via economic policies. Individual action and interaction with others are the relevant levels of analysis.
When businesses embrace the concept of subjective value, they redefine the role of the consumer or customer in their business model and strengthen six important connections.
A recent special issue of the Strategic Entrepreneurship Journal, a top journal for which our friend Peter Klein sits on the editorial board, examined the impact of policy on entrepreneurship itself and on the institutional and social challenges of these policy interventions.
The market for healthcare provides us with a pertinent example of co-navigation of radical value uncertainty. For consumers, there is no certainty available — they can’t know which doctors or providers will give them the best experience, they don’t know the right means to choose to attain their end (health), and they can’t use the usual market price signals in the search for value since the price of healthcare is not visible to them. They don’t purchase the product, they purchase insurance, a different financial product than the healthcare experience they really need.
There’s a new economics of value and value capture that business leaders should understand and act upon. It changes perspectives, and it changes business processes, and even the very purpose of business.
Professors Bylund and Packard offer us an entirely new perspective on market process: the co-navigation of value uncertainty by consumers and entrepreneurs. It’s a radical re-thinking of value and value roles,
of stimulus-response, and of cause and effect.