Sublime

The bottom line is that small changes in the communication structure can affect decisions.

There is an additional element of importance: these systems usually generate implicit internal models of their environments, models progressively revised and improved as the system accumulates experience. The systems learn.

foundations were laid in Victorian times. Now it is changing radically. Standard economics is suddenly being challenged by a number of new approaches: behavioral economics, neuroeconomics, new institutional economics. One of the new approaches came to life at the Santa Fe Institute: complexity economics.

The Economy of Cities

Nevertheless, deeper reflection on the role of human imagination reveals its fundamental role. Put simply, the earth could not support as many people as it does today if humans had not invented the concept of government from our basic experiences of family life, or the concept of money from our experiences trading small and precious objects. All go

we typically use the imagery of relatively concrete domains of experience to form intuitions about more abstract domains, especially in the social, political, and ecological realms.

It seems that, from the perspective of mathematical science, there exist two natural domains. The first is the physical domain of particles, fields, and universal laws, with an associated search for elegant theories that apply everywhere in the known universe. Here, science has made great strides. The second domain is that of complex phenomena. The

Second is an aggregation mechanism, a way to bring that information into one place. Double-auction markets, where buyers bid a price and sellers offer a price, are extraordinarily good at this function. The final condition is properly functioning incentives—rewards for being right and penalties for being wrong. For the stock market, this is measure

She said much of the finance industry has too narrow a view of its strategy and goals. It often becomes a short-term, almost zero-sum game with many investors focused only on small relative gains won against each other.