Both systems can be viewed as complex
adaptive systems consisting of many interacting
agents that adapt and learn from their interactions
with one another:
system: economic system - ecosystem
agent: organism - company
interaction: food webs - supply chains
One major difference is perhaps what the
agents do with their supply, the agents
of ecosystems are more "selfish":
* Organisms consume s.th. to produce more of
themselves, they maintain themselves with food,
and they produce stuff necessary to make more
copies of themselves. Agent and product are
identical.
* Companies consume s.th. to produce a product
which is different from themselves. Agent and
product are different.
On the one hand, economic systems are more
complex and more differentiated than ecologic
systems. Companies can consume other companies
to produce larger companies and to maintain
themselves, but they also generate a product
which is independent from themselves.
On the other hand, ecologic systems are much
more sophisticated, since they are unbeatable in
green technology, regenerative energy and natural
recycling ;-)
-J.
----- Original Message -----
From: Russ Abbott
To: The Friday Morning Applied Complexity Coffee Group
Cc: Alexandre Lomovtsev ; Shuger,Debora ; Porter,Edith
Sent: Sunday, October 17, 2010 6:35 AM
Subject: [FRIAM] Economy vs. ecology
I've been thinking about the differences between our economic system and a
natural ecology. Since I'm not an expert in either I'm writing this in the
hope that someone who is will clarify any issues I get wrong.
It seems to me that a fundamental difference is that natural ecologies are
supply-driven. By that I mean that the supply of resources (food, sunshine,
etc.) is the primary determinant of how the ecology functions. (I'm not
talking here about transitions when a species invades an ecology and upsets
the pre-existing balance. I want to focus at least at the beginning on
ecologies that have achieved a fairly stable state.) In such ecologies
fairly well-defined food webs are established. These determine the sizes of
the various populations, etc. Of course there are or can be cycles such as
the standard predator-prey cycle. But even in these cases, the whole thing
is supply driven. It's what's available (primarily to be eaten) that
determines everything else.
Our economic system is for the most part supply-driven. The economy is not
completely detached from the need for basic energy and other natural
resource supplies. If there are supply shocks in these areas, the economy
will feel them. But for the most part what most people do (as economic
agents) depends on whether someone is willing to pay them. That means that
most people are dependent on the demand (for their services) rather than the
supply (of available food). Our current economic situation illustrates that
very well. We are currently demand-deficient. Not enough people want to buy
enough things (or services) to keep us all employed. This seems very strange
and artificial. That so much of the economy depends on demand rather than
supply makes it very vulnerable to the kind of problems we face today.
But as I said, our economy is not completely demand driven. We are still
supply dependent. Working with others I'm hoping to build a model that
illustrates where the tipping point is. When does a supply-driven ecology
become a demand-dependent economy? Is it a sharp phase transition? Can it be
characterized in terms of other properties? Comments are welcome.
-- Russ Abbott
______________________________________
Professor, Computer Science
California State University, Los Angeles
Google voice: 424-242-USA0 (last character is zero)
blog: http://russabbott.blogspot.com/
vita: http://sites.google.com/site/russabbott/
______________________________________
============================================================
FRIAM Applied Complexity Group listserv
Meets Fridays 9a-11:30 at cafe at St. John's College
lectures, archives, unsubscribe, maps at http://www.friam.org
============================================================
FRIAM Applied Complexity Group listserv
Meets Fridays 9a-11:30 at cafe at St. John's College
lectures, archives, unsubscribe, maps at http://www.friam.org
