Continuing the discussion about networks, trading and economics ... we're now seeing terminology used here years ago: phase transitions, complexity, recursion, fractal behavior, and so on. Sustained non-equilibrated economics is a concept at variance with mainstream thinking.
' A picture is now emerging of the economy different from the standard equilibrium one. To the degree that uncertainty and technological changes are present in the economy -- and certainly both are pervasive at all levels -- agents must explore their way forward, must "learn" about the decision problem they are in, must respond to the opportunities confronting them. We are in a world where beliefs, strategies and actions of agents are being "tested" for survival within a situation, or outcome or "ecology" that these beliefs, strategies and actions together create. Further, and more subtly, these very explorations alter the economy itself and the situations agents encounter. So agents are not just reacting to a problem they are trying to make sense of; their very actions in collectively doing so re-form the outcome, which requires them to adjust afresh. We are, in other words, in a world of complexity, a complexity associated with non-equilibrium.'
ineteconomics.org
Jim |
