Sunday, May 11, 2008



If you are an economist, you will know such 萬全之策 is simply not economical and therefore should not be adopted even if it were available. Interested readers could spell out the missing steps involved in deriving the conclusion in the statement above in the comments section.



I know I can't get the prize, but let's try. Ignorance of opportunity cost?

Gary M C Shiu said...

Hi Ming:

Well done.

Here is what I have in mind:

If you have the standard set of marginal benefit and marginal cost curve, where the former slopes downward while the latter slopes up, the interaction of the two curves (considerd an optimal point by economists) will certainl fall short of the point where no possible leakage of personal data is possible. That's all.

Gary M C Shiu said...

Dear Ming:

I mean to write "intersection" not "interaction" above. Sorry for the confusion!



I remember a professor in business school told me once before, "business is not seeking for cost minimization but profit maximization, because cost minimizaton simply means zero production".

In my risk management study, a similar thought is that risk management doesn't mean risk minimization/risk avoidance.

OK, what's the prize :)