Wednesday, January 26, 2011

“Butterfly Economics” – Paul Omerod

The conventional ways of thinking… .In essence, the world is seen a machine. The machine may be very complicated, but in principle it can be understood completely, and the consequence of using it in various ways can be predicted. A lever pulled here or button pressed there will have entirely predictable consequences.

…the choice of any individual is influenced powerfully by the opinions and actions of others. Popular toys or films become even more popular precisely because they are popular. Hence the enormous difference seen in revenues between the most and least successful films, and the spectacular bursts in demand for a single product which occur almost every Christmas,

Economies and societies are not machines. They are more like living organisms. Individuals do not act in isolation, but affect each other in complex ways.

People see what others do and may be influenced by it.

…humans societies and economies, worlds living at the edge of chaos.

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