I think, it was end 80ies / begin 90ies? when an economics researcher (Brian Arthur, Stanford) found that the widely prayed rule: "when markets come close to saturation, prices per piece go down" does not hold for all businesses. Microsoft, Gilette,..showed the opposite.I think, this is because economists did concentrate on one-sided markets (like game theory concentrates on ono to one games?).In two-sided markets we usually have the situation that one side needs to be subsidized to get money from the other side (Windows and Office, razors and razor-blades, Acrobat Reader and Writer,...). I call this co-evolution. Co-evolution has complex feed-back structures and leads to complex systems.In fact, Arthur was one of the founding members of the "Santa Fe Instizute for Complex Systems".Do we have such research in qf?
Last edited by exneratunrisk
on January 29th, 2007, 11:00 pm, edited 1 time in total.