Sublime

Because of the widespread instability, it’s not enough for a business to be the market leader or the most profitable company. Rather the stake is to take the vast majority of the market[254], at (almost) any cost. Those who generate superior increasing returns to scale can crush competition and realize a sizable return on investment over the long t

The take-home message from Schelling’s story—that incentives sometimes backfire—is familiar to psychologists.

Conventional economics asks how agents’ behaviors (actions, strategies, forecasts) would be upheld by—would be consistent with—the aggregate patterns these cause. It asks, in other words, what patterns would call for no changes in microbehavior, and would therefore be in stasis or equilibrium.

Complexity economics views the economy as a system not necessarily in equilibrium, but rather as one where agents constantly change their actions and strategies in response to the outcomes they mutually create.

Nations or people in a true alliance treat each other as equals. They work together to meet a common goal—defeating or deterring an enemy, for example.

The economy is never in equilibrium but is rather in a continual state of adaptive change.

Two great problems in Economics Allocation in the Economy Quantities: General equilibrium, international trade, game-theory outcomes . . . Formation in the Economy Processes: Of econ development, discovering novel technologies, structural change, arrival of new institutions, temporary phenomena like bubbles, crashes . . . The former is mathematizab