The Self-Organizing Economy In the last few years the concept of self-organizing systems—complex systems in which randomness and chaos seem spontaneously to evolve into unexpected order—has linked together researchers in many fields, from artificial intelligence to chemistry, from evolution to geology. Now leading economist Paul Krugman shows how principles that explain the growth of hurricanes and embryos can also explain the formation of cities and business cycles; how the same principles of “order from random growth” can explain the strangely simple rules that describe the sizes of earthquakes, meteorites, and metropolitan areas. Weaving together strands from many disciplines, from location theory to biology, The Self-Organizing Economy offers a surprising new view of how the economy structures itself in space and time.

The synchronized flashing of fireflies at night. The spiraling patterns of an aggregating slime mold. The anastomosing network of army-ant trails. The coordinated movements of a school of fish. Researchers are finding in such patterns--phenomena that have fascinated naturalists for centuries--a fertile new approach to understanding biological systems: the study of self-organization. This book, a primer on self-organization in biological systems for students and other enthusiasts, introduces readers to the basic concepts and tools for studying self-organization and then examines numerous examples of self-organization in the natural world. Self-organization refers to diverse pattern formation processes in the physical and biological world, from sand grains assembling into rippled dunes to cells combining to create highly structured tissues to individual insects working to create sophisticated societies. What these diverse systems hold in common is the proximate means by which they acquire order and structure. In self-organizing systems, pattern at the global level emerges solely from interactions among lower-level components. Remarkably, even very complex structures result from the iteration of surprisingly simple behaviors performed by individuals relying on only local information. This striking conclusion suggests important lines of inquiry: To what degree is environmental rather than individual complexity responsible for group complexity? To what extent have widely differing organisms adopted similar, convergent strategies of pattern formation? How, specifically, has natural selection determined the rules governing interactions within biological systems? Broad in scope, thorough yet accessible, this book is a self-contained introduction to self-organization and complexity in biology--a field of study at the forefront of life sciences research.

Written in an informal and conversational style, " The Self-Organizing Economy shows how models of self-organization, "order from stability," can be applied to economic phenomenon. This concept, which has become increasingly influential in the last few years, can explain the formation of cities and business cycles. The book includes powerful insights of conventional economic analysis and strands from many disciplines, from location theory to biology, to create a surprising new view of how the economy forms structures in space and time.

Self-organized criticality, the spontaneous development of systems to a critical state, is the first general theory of complex systems with a firm mathematical basis. This theory describes how many seemingly desperate aspects of the world, from stock market crashes to mass extinctions, avalanches to solar flares, all share a set of simple, easily described properties. "...a'must read'...Bak writes with such ease and lucidity, and his ideas are so intriguing...essential reading for those interested in complex systems...it will reward a sufficiently skeptical reader." -NATURE "...presents the theory (self-organized criticality) in a form easily absorbed by the non-mathematically inclined reader." -BOSTON BOOK REVIEW "I picture Bak as a kind of scientific musketeer; flamboyant, touchy, full of swagger and ready to join every fray... His book is written with panache. The style is brisk, the content stimulating. I recommend it as a bracing experience." -NEW SCIENTIST

A clear and concise introduction to this new, cross-disciplinary field.

It is widely recognised that mainstream economics has failed to translate micro consistently into macro economics and to provide endogenous explanations for the continual changes in the economic system. Since the early 1980s, a growing number of economists have been trying to provide answers to these two key questions by applying an evolutionary approach. This new departure has yielded a rich literature with enormous variety, but the unifying principles connecting the various ideas and views presented are, as yet, not apparent. This 2005 volume brings together fifteen original articles from scholars - each of whom has made a significant contribution to the field - in their common effort to reconstruct economics as an evolutionary science. Using meso economics as an analytical entity to bridge micro and macro economics as well as static and dynamic realms, a unified economic theory emerges.