Mobile Technology and the Law of Market Information Parity

Mobile Technology and the Law of Market Information Parity

gerberUC (1) (1)_thumb.jpg Adam Gerber is an independent software and strategy consultant  focusing on mobile strategy and Android. He has been developing  software for close to 20 years and has worked with Java since its  inception. Adam has developed Android apps for Intel, Roche Pharmaceuticals, Discovery Healthcare, Zebra Technologies, and others. He also teaches both Java Programming and Android Application Development in the CS Masters Program at the University of Chicago and is active in the Chicago Android community. 

Throughout economic history, market information asymmetry has long been the key to success; the Medici, Rothschilds, Waltons, and countless financial barons have used market information advantage to arbitrage markets and amass great fortunes at the expense of the less well-informed. "Information wants to be free" is the mantra you are likely to hear chanted by the likes of Chris Anderson and Seth Godin, but this is only half the story. Information has a direction, a teleology, and a tropism to a state that is best described as market information parity.  Of course, market information parity is an asymptotic state which can never be fully realized, yet as as we drive relentlessly closer to parity, markets become extremely efficient, and arbitrage conditions extremely rare. 

Every successful business model in the Internet age (e.g. Google, Facebook, Amazon, etc.) is engaged to this end; culling, sorting, searching, consolidating, distributing, parsing, and presenting information. Yet, technology is poised for yet another punctuated shift as many of these same tools become agents. No longer relegated to merely assisting us in our economic decisions, software agents will be unleashed to engage the market directly. If you want to catch a glimpse of our economic future, you need only regard financial markets where software agents already transact the majority of trades. Ubiquitous mobile technology will serve to accelerate this trend throughout all sectors of the economy. Get ready for a brave new world.