Level Two Chaos

Level two chaos is chaos that reacts to predictions about it, and therefore can never be predicted accurately. Markets, for example, are a level two chaotic system. What will happen if we develop a computer program that forecasts with 100 per cent accuracy the price of oil tomorrow? The price of oil will immediately react to the forecast, which would consequently fail to materialise. If the current price of oil is $90 a barrel, and the infallible computer program predicts that tomorrow it wil...

 The Market is Not Darwinian

What is a market? And what does it have to do with the Internet? The fashion right now, one I follow, is to think of the Internet as a living environment, a place for societies, communities, and institutions to grow--rather than as something constructed, a superhighway, for example. That leads to appropriate metaphors, looking at the Net as something to be cultivated and nurtured rather than built or engineered. (Only its rules need to be designed so that it can grow in good health.) The stru...