In this book I try to show how models of self-organization can be applied to many economic phenomena - how the principle of "order from instability," which explains the growth of hurricanes and embryos, can also explain the formation of cities and business cycles; how the principle of "order from random growth" can explain the strangely simple rules that describe the sizes of earth quakes, meteorites, and metropolitan areas. I believe that the ideas of self-organization theory can add substantially to our understanding of the economy; whatever their ultimate usefulness, these ideas are very exciting, and playing around with them is tremendous fun.
Paul KrugmanRelated topics
add believe book business earth formation fun instability metropolitan order playing show simple try ultimate understanding whatever rules self-organizationRelated quotes
The urn model is to be the expression of three postulates: (1) the constancy of a probability distribution, ensured by the solidity of the vessel, (2) the randomcharacter of the choice, ensured by the narrowness of the mouth, which is to prevent visibility of the contents and any consciously selective choice, (3) the independence of successive choices, whenever the drawn balls are put back into the urn. Of course in abstract probability and statistics the word " choice " can be avoided and all can be done without any reference to such a model. But as soon as the abstract theory is to be applied, random choice plays an essential role.
Hans Freudenthal
Capital, explaining the origins of the capitalist mode of production, points towards the inevitable historical decline and fall of this same social system. An economic theory based upon the historical relativity of every economic system, its strict limitation in time, tactlessly reminds Messrs the capitalists, their hangers-on and their apologists that capitalism itself is a product of history. It will perish in due course as it once was born. A new social form of economic organization will then take the place of the capitalist one: it will function according to other laws than those which govern the capitalist economy.
Ernest Mandel
The final truth about a phenomenon resides in the mathematical description of it; so long as there is no imperfection in this, our knowledge of the phenomenon is complete. We go beyond the mathematical formula at our own risk; we may find a model or a picture which helps us understand it, but we have no right to expect this, and our failure to find such a model or picture need not indicate that either our reasoning or our knowledge is at fault. The making of models or pictures to explain mathematical formulas and the phenomena they describe is not a step towards, but a step away from reality; it is like making a graven image of a spirit.
James Jeans
First they junked the concept of "justice.” Examined semantically "justice” has no referent-there is no observable phenomenon in the space-time-matter continuum to which one can point, and say, "This is justice.” Science can deal only with that which can be observed and measured. Justice is not such a matter; therefore it can never have the same meaning to one as to another; any "noises” said about it will only add to confusion.
But damage, physical or economic, can be pointed to and measured. Citizens were forbidden by the Covenant to damage another. Any act not leading to damage, physical or economic, to some particular person, they declared to be lawful.
Robert A. Heinlein
2) "the a of différance also recalls that spacing is temporization, the detour and postponement by means of which intuition, perception, consummation - in a word, the relationship to the present, the reference to a present reality, to a being - are always deferred. Deferred by virtue of the very principle of difference which holds that an element functions and signifies, takes on or conveys meaning, only by referring to another past or future element in an economy of traces. This economic aspect of différance, which brings into play a certain not conscious calculation in a field of forces, is inseparable from the more narrowly semiotic aspect of différance.
Jacques Derrida
