The Payoff

The part that distinguishes complex adaptive systems from other systems is that the system, or the actors within the system, learn.  They adapt, and in order to do so, there must be a feedback system that reacts to a payoff.  For example, in a city, a payoff can be as simple as the survival of … More The Payoff

Increasing Returns

Brian Arthur and his concept of increasing returns is the key.  Simple systems that only operate in negative feedback loops can only give diminishing returns, but the system is always working its way back to equilibrium.  Increasing returns come when complex systems are in some level of positive feedback.  The increase of A leads to … More Increasing Returns