There are many economic terms being tossed around to try and explain the transformations happening in the way we live, work and consume. Here are seven of the most predominant terms to know:
an approach to the management of information that treats human attention as a scarce commodity, and applies economic theory to solve various information management problems. Attention economics uses findings from behavioral economics to assess the effects of psychological, cognitive, emotional, cultural and social factors on decision-making.
an economic system that is regenerative and aimed at minimizing waste and making the most of resources. It is a stark departure from the traditional linear economy, which has a 'take, make, dispose' model of production. The circular economy focuses on environmental regeneration methods, waste reduction, a reusable product lifecycle, the Law of Unintended Consequences in business planning, and host of alternative energy sources and elemental applications, including solar, wind, thermal, Purecell, and graphene.
the economic activity created by digital marketplaces and technology companies to fulfill consumer demand via immediate access to goods and services. It includes approaches such as Predictive Analytics and last mile solutions.
a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs. Some characteristics include a smaller operational footprint, more work from home, business-in-a-box concepts, multi-taskers and more. Of course another term, the “Platform Economy,” has been coined to describe online platforms (like Amazon and Airbnb) that facilitate the gig economy.
a marketplace sometimes known as a “trust economy” or a “shared economy,” where consumers rely on each other instead of large companies to meet their wants and needs. It incorporates global connectivity, avatars, and video learning, for example.
a phrase coined by Social Entrepreneur Aaron Hurst to describe the way in which the workplace culture is changing to meet employees’ desire to realize a higher societal purpose in their work. Greater inclusion, diversity, and empowerment, plus Corporate Social Stewardship (or CSR), Consumer Environmental Conscience, and Local Living Economies are typical elements.
a term coined by Don Tapscott, chairman of the Blockchain Research Institute, to denote any economic process, transaction, interaction or activity that is based on digital technologies, such as the worldwide web, apps, Voice-User Interface (VUI), and Internet of Things (IoT). It also uses virtual economics like blockchain and hashgraph, including the use of Smart Contracts, cryptographic tokens, cryptocurrencies, and online crowdfunding. Smart Cities and Biometric ID fall under this economic system, too.