Second-order Economics as an Example of Second-order Cybernetics

Heinz von Foerster proposed that the observer should be included in the domain of observation. He suggested that this approach to cybernetics be called second-order cybernetics. Heinz was primarily interested in understanding cognition, based on neurophysiology and mathematics. But there has also been strong interest in cybernetics as a theory of social systems. Using the “second order” idea for existing social science fields would focus attention on the role of the observer and on reflexive phenomena such as the effect of theories on what is being studied. This article considers how the field of economics might adopt the second order idea.