LOONY TUNES no 180
Tadeusz Szuba, author of the model for the phenomenon of collective intelligence, (2001) posts (15 October) on Fifty State Banana HERE
‘Computational model of the Invisible hand phenomenon”
Tadeusz Szuba proposed a theory – that Adam Smith’s Invisible Hand metaphor is an occurring phenomenon that can be formalized, simulated and most probably used to propose all-new tools to analyze and predict markets in the future.
The proposed theory claims that the Invisible Hand is a symptom of the existence of another dimension of a market, which is of computational nature. A market and its agents are unaware of this, because only piece(s), or result(s) of this symptom can be observed. In this dimension, the nature of a market and agents creates a complete, programmable computer on the platform of brains of agents and the physical structure of the market. This computer is self-programming and since it exists and functions on the platform of market agents’ brains, results of computations are outputted via the brains of agents and represent themselves as the behavior of a market. These computations are chaotic, distributed, parallel, and non-continuous, with interleaving threads of different computations.
These computations are driven by:
1 abstract value assigned to objects and services
2 calculations and logic inferences.
What is fundamental for the emergence of this computational dimension, is that market agents are able to assign value to objects, services and actions, are able to build in consciously chains of inferences, and are able to convert conclusions into business actions.
According to this theory, the Invisible Hand is much more powerful and universal than Adam Smith and contemporary economists even expected. The Invisible Hand performs market control on several levels: in terms of production and consumption (equilibrium optimization); in terms of new discoveries (technical market optimization); in terms of social behavior (social market optimization), such as modifying and discovering new rules of market behavior. It is expected that this discovery may lead to the creation of all-new tools and models for market analysis and prediction, compared with today’s macroeconomic models.
A leap into ever more complex theory for a phenomenon that does not exists as it is based on a rhetorical metaphor from language, not
from physics or social relationships.
LOONY TUNES no. 179
Michael Tennant posts (14 October) on New American (‘that freedom shall not perish’) HERE
“The fact is that the ACA is both unconstitutional and unworkable. It cannot be successfully reformed because it attempts to substitute central planning for the invisible hand of the free market, as if a handful of politicians and bureaucrats in Washington could possibly micromanage the healthcare of 320 million people to everyone’s satisfaction. Now, as in 2010, the only genuine solution for it is repeal.”
Ben Chu posts (15 September) on The Independent HERE
“The Brexiteers’ Marmite conspiracy theories exposed their utter ignorance of how markets really work”
“Despite the deluge of headlines it generated, there was actually nothing unusual about the process of a supermarket haggling with its supplier over prices
“When we sort ourselves in this instinctive way, the average wait for everyone is lower and customers are processed as efficiently as possible. There’s no need for any complex calculations or centralised co-ordination. By doing what’s right for ourselves we help everyone. This is Adam Smith’s “invisible hand” in action.
And that is how we often conceptualise markets. As consumers we respond to changes in prices and supply responds to shifts in demand. It all happens naturally and fluidly, creating a kind of spontaneous order. Yet, while it is true that markets can sometimes work in that almost magical textbook way, more often than not they don’t.”
Islam Omran (posts 16 Ocftober) HERE
THE INVISIBLE HAND IN THE CLOUD
“The phrase “invisible hand” was coined by Adam Smith in the book ‘The Wealth of Nations’. The theory behind this very popular phrase is that there are unintended social benefits to individual actions. The invisible hand theory has evolved and was turned to public policy formulation as a strategic means for intending social benefit. Balancing control, promoting business interest and ultimately attaining social benefits have been at the forefront of National Development objectives.
The invisible hand, in predominantly the Cloud private sector, has unleashed new possibilities and innovative services, delivering social benefits, creating new markets or disrupting existing industries.”4
Dan Neil posts (17 October) in the Wall Street Journal
“How Aston Martin and Red Bull Racing Reinvented Car Design
But what if road cars were shaped differently? What if, rather than becoming draggy and unstable with speed, family sedans became more stable, the invisible hand of the air pressing them to the tarmac rather than prying them loose?”
LOONY TUNES no. 178
Admin posts (12 October) in INFO-EUROPA HERE
Univision Scolds Conservative Media For Their Conspiracy “Theories About Climate Change”
“In the eyes of some conservative commentators, the invisible hand of liberals operated behind the powerful Hurricane Matthew, a climate phenomenon that triggered a massive evacuation on the east coast of Florida as had not been experienced in over a decade.Limbaugh is right when stating all these, but he skipped one little detail: Hurricane Sandy.Some of Trump’s conservative supporters, though, couldn’t wait to wade in and proffer their “theories” on a devastating weather event they believe is a hoax.”
Barry Bridges posts (11 October) on Newport This Week HERE
“As with his previous run for council in 2014, Lavarre is seeking an overhaul of business regulations. “The key is to reduce limitations, regulations, excessive rules, and taxes. If you reduce the burden on merchants, you’ll have more who will thrive under the invisible hand of capitalism.”
Editorial posted (14 October) in Charleston Gazette-Mail HERE
"Government, after all, is supposed to be “the invisible hand,” not an overlord imposing burdensome regulations that prevent businesses from being successful. A competitive marketplace is nearly as important to free society as democracy itself. Just as we are vigilant in protecting our rights under the Constitution, we also must protect economic competition.