[Fis] Artificial Markets

Dear colleagues,

I much agree with some comments in Pavel's message (on market limitation).
Indeed the misconceptions about markets may reach grandiose dimensions. See
for instance the 'efficient market hypothesis' recently handled in a DARPA
project as the wiser and more farsighted way to explore political and
national security issues (Science, 301, August 2003, p. 749). The idea was
to create artificial 'information markets' to harness all the information
available, to get an 'invisible hand' wise decision, particularly about
terrorism issues. But the public scandal about the project (mostly the
rivalry inter-agencies) forced its premature cancelation.

My personal question (also inspired by Karl's posting just arrived) is:
HOW COULD WE CHARACTERIZE MARKETS FROM A FORMAL POINT OF VIEW? Just for a
sample of this extra exploratory direction, here is a fragment of an
exchange between Koichiro and me last year

Koichiro:
>bookkeeping between supplier and consumer is the sole means for tailoring
>such an exquisite and unbelievable invisible hand. Adam Smith must have
>anticipated what the 21st century would be going to accomplish in the name
>of information.
>Information at the turn of the 21st century seems to be a thread
>connecting physics, chemistry, biology and even economics. A common
>denominator is serious negotiation between supplier and consumer.

Pedro:
Personally I think that in between
'Darwin' and 'Adam Smith' principles (biological maximization of fitness
and economic maximization of utility) we are still
missing a central arch for the theoretical info bridge. Curiously Ram�n y
Cajal attempted a principle of 'brain bookeeping economy' 100 years ago,
but has received little attention). Your posting strongly reminds me on
that missing arch... (it reminds Leyton's neurodynamics and
neurosymmetries too)

  
Received on Wed Nov 5 13:37:33 2003