image - Knowledge Overlap is the ease of [communication - overlap 100% = 100% of what is said is interpreted as intended. - 0% overlap = 0% of words uttered are interpreted as intended - For example, if 50% is interpreted as intended, it takes 2 utterances to convey the content of 1 - It is natural to assume that the distance is the inverse of the overlap

  • But trigonometric inequality does not hold for this distance

    • It is possible that the distance between Mr. A and Mr. C is longer than “the distance between Mr. A and Mr. B + the distance between Mr. B and Mr. C
    • Not “distance” in the mathematical sense.
    • In such a space, it can happen that the distance mediated by B is closer than the direct distance between A and C.
    • This reduction in distance can be economically valuable.
  • If distance is better, should we all have overlapping knowledge?

    • If you only consider the efficiency of communication, you’re right.
    • Add to that the effect of economic value created by the “search of the unknown,” and you get [trade-off

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