POSITIVE FEEDBACKS IN THE ECONOMY
POSITIVE FEEDBACKS IN THE ECONOMY
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DOI:
10.1038/scientificamerican0290-92
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发表时间:
1990-02-01
影响因子:
3
通讯作者:
ARTHUR, WB
中科院分区:
文献类型:
--
作者:
ARTHUR, WB
Conventional economic theory is built on the assumption of di minishing returns. Economic actions engender a negative feedback that leads to a predictable equilibrium for prices and market shares. Such feedback tends to stabilize the econo my because any major changes will be offset by the very reactions they gen erate. The high oil prices of the 1970's encouraged energy conservation and increased oil exploration, precipitat ing a predictable drop in prices by the early 1980's. According to convention al theory, the equilibrium marks the" best" outcome possible under the cir cumstances: the most efficient use and allocation of resources. Such an agreeable picture often does violence to reality. In many parts of the economy, stabilizing forces appear not to operate. Instead posi tive feedback magnifies the effects of small economic shifts; the economic models that describe such effects dif fer vastly from the conventional ones. Diminishing returns imply a single equilibrium point for the economy, but positive feedback-increasing re turns-makes for many possible equi librium points. There is no guarantee that the particular economic outcome selected from among the many alter-W. BRIAN AR is Morrison Profes sor of Population Studies and Econom ics at Stanford University. He obtained his Ph. D. from the University of Califor nia, Berkeley, in 1973 and holds gradu ate degrees in operations research, eco nomics and mathematics. Until recent ly Arthur was on leave at the Santa Fe Institute, a research institute dedicated to the study of complex systems. There he directed a team of economists, physi cists, biologists and others investigating behavior of the economy as an evolving, complex system.