Emergence of Organization and Markets
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Transcript of Emergence of Organization and Markets
Emergence of Organization and Markets
Lloyd Demetrius
June 2014
ClaimThe Origin and Evolution of Organizational
StructuresCan be analytically explained in terms of a theory
of autocatalytic networks.
Classes of Networks(1) Social Networks: cooperation between
individuals in a community(2) Economic Networks: transformation and
production of economic commodities(3) Linguistic Networks: production and generation
of symbols2
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Autocatalytic NetworksChemical Reaction Networks
Biochemical Examples1) Glycolysis: 2 ATP
2) Oxidative Phosphorylation 36 ATP
Product C catalyses ist own synthesis from precursors A and B
A + C D
D + B E
E 2C
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Problem
To what extent is the conceptual
framework of autocatalytic networks
an appropriate model for the analytic
study of the origin and evolution of
socio-economic networks?
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Origin and Evolution in Three Classes of Networks
(1) Metabolic Networks: Energy production
(2) Social Networks: Evolution of cooperation
(3) Demographic Networks: Evolution of life
history
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Metabolic NetworksOrigin and Evolution of Energy Production in Cells Glycolytic Networks Oxidative Phosphorylation
Cancer cells: Predominantly GlycolysisNormal cells: Predominantly Ocidative Phosphorylation
Problem The Evolutionary Basis for Glycolysis and Ocidative Phosphorylation
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Social NetworksOrigin and Evolution of Cooperation
2 3
1
2 3
1
Random Interaction
Stratified Network Egalitarian Network
1 2
3
1 2
3
Structured Interaction
Origin
Evolution
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Aggregates of Interacting Molecules
Solid
Liquid
Gas
Problem Explain the stability of these states
Non-Autocatalytic Networks
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Thermodynamic EntropyMeasure of Complexity in Material Aggregates
Solid: low entropy
WkS logW = number of ways that the molecules of a system can be arranged to achieve the same total energy
Gas: high entropy
Second Law of Thermodynamics:Thermodynamic entropy increases
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Demographic NetworksOrigin and Evolution of Iteroparity
Annual Plants Perennial Plants
Problem: The evolutionary rationale for the diversity in life history
b1 b2 b3 bd-11 2 3 d
m2m3
md
b1 b2 b3 bd-11 2 3 d
md
1 2 3 d
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Organismic Evolution(1) Variation: individuals within a species vary in
terms of their physiology and behavior(2) Heredity: there exists a positive correlation
between the behavioral and physiological traits of parents and their offspring
(3) Selection: individuals differ in their capacity to appropriate resources from the external environment and to convert their resources into offspring
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Prerequisites for an Analytical Model of Network Evolution
(1) A mathematical description of network complexity
(2) A formal description of the network-environment interaction
(3) An analytic description of natural selection
(4) A description of the rules of inheritance
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Demographic NetworksNetwork Complexity
Annual PlantsW=1, S=0
Perennial PlantsW>1, S>0
Network-Environment Resource abundance, resource composition
Laws of Inheritance Mendelian
b1 b2 b3 bd-11 2 3 d
m2m3
md
b1 b2 b3 bd-11 2 3 d
md
EntropyryEvolutionaWkS logW = number of distinct pathways of energy flow in the network
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Evolution of Demographic NetworksEvolutionary Changes in Network Complexity
Variation: Changes in the topology and interaction intensity of the network – changes in life history
Selection: Competition between variant and ancestral network for the resources
X = ancestral typeX* = variant type
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Principles of Demographic EvolutionThe outcome of selection is predicted by evolutionary entropy and is contingent on the external resource constraints:
(I) Resources constant in abundance anddiverse in compositionEvolutionary entropy increases (selection for iteroparity)
(II) Resources variable in abundance,singular in compositionEvolutionary entropy decreases (selection for semelparity)
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From Demographic Networks to Social Networks
Properties Demographic Networks
SocialNetworks
Unit Life Cycle Cooperative and Selfish Transactions
Target of Selection Phenotypic Traits Behavioral Traits
Laws of Inheritance Mendelian Cultural
Environmental Constraints
Energy: Foodstuffs Energy: Foodstuffs, Information
Measure of FitnessNetwork Complexity
Degree of Iteroparity
Degree of Cooperation
191919
Evolutionary EntropyMeasure of Network Complexity
Few pathways = low entropy
WkS logW = number of distinct pathways of energy flow within a network
1 2 3 1 2 3
Several distinct pathways = high entropy
Network Low Entropy High Entropy
Demographic Annual Plants Perennial Plant
Metabolic Glycolysis Oxidative Phosphorylation
Social Selfishness Cooperative
Political Stratified Egalitarian
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Applications of the Entropic Principles of Network Evolution
Resource constraints
Metabolic networks
Social networks
Economic networks
constant abundance -diverse composition
oxidative phosphorylation
cooperation economic equality
variable abundance -singular composition
glycolysis selfishness economic inequality