The Economy as a Distributed, Learning Control System
نویسنده
چکیده
The perceptual control theory of Powers is used to analyse the market mechanism as a negative feedback loop which controls the deviation between demand (goal) and supply (perception) by adjusting the amount of effort invested in the production process (action), through the the setting of the price. The interconnection of distributed control loops for the different products and services facilitates the allocation of production factors over the different products. The resulting global control system becomes more efficient by learning how to be more sensitive to deviations from the goal, and less dependent on the availability of resources. In that way, it resembles the nervous system of a supra-individual organism.
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