Bruce,
I think your assessment of the implication of control theory for economics is valuable because of the extreme simplification to which you reduce matters. Understand that I'm not saying, not yet anyway, that in reducing issues thisway you are making a mistake, or mistakes.
However, you say,
Economics can certainly use good models, but until HPCT provides a more
detailed picture of perceptual functions and the role they play in
cooperative behavior, I suspect little progress with be made from the
control theory perspective.
I find your "suspicion" surprizing. As best I can tell you have good understanding of the principles of control theory and yet you see the relationship between the present state of application of control theory to human behavior as such that it generates the conclusion that "little progress" will be made until there is a marked advance in the sophistication of the control theory analysis of human perceptual functions.
In contrast from my perspective the possiblities for a control theory based economics look somewhat different. Over the years I've managed, initially in colaboration with Powers, and then independently as I gained some elementary program skills, to create control theory models of the 1) Giffen paradox, 2) a Giffen curve, and a 3) Giffen surface, 4) dynamic Giffen models, a 5) global model of a consumer from a control theory standpoint 6) a model of behavior known as the Veblen/Dussenberry effect, 7) the backward bending labor curve,
8) Veblen's model of Conspicious Consumption, 9) the blue-jeans effect ( a reverse of the conspicious consumption effect ), 10) an update in control theory terms of Burridan's Ass paradox, 11) an information flow demo that in a lattice shows how a delay loop generates profound instablities, this model has application both in economics to questions where there is a differential access to information, and in political science in regard to a substansive as contrasted to a formalist theory of democracy. 12) an application of Powers' multiple control work to the problem known as the theory of institutional adjustment, 13) the recent two commodity model, and a 14) single good control theory model of demand upon which it is based, and a control theory interpretation of what are known as 15) hurdle rates, a concept in the theory of the firm under the caption of 16) X-efficiency, a re-interpretation of Keynes' model of the economy in which the fundamental variables are specified in control theory terms, and 17 a re-interpreation of the pragmatism in philosophy, and a similar re-reading of the work of 18) Veblen, and 19) Commons in economics in terms of control theory, plus an intepretation of 20) Foster's conception of institutional adjustment in a control theory perspective. And, last 21) a fulfillment of Bouldings prediction that an application of cybernetics to economics would revolutionize the conception of the economic process. 22? ) there's Powers economic testbed that is already partly in operation. And, 23?? ) it just recently occurred to me that the various descriptions of the theory of the firm and competition could be rewritten in control theory terms. I've tended to think such rewriting exercises would be trival and not worth the effort. However, after completing (more or less) the two commodity model I've changed my mind in this regard. 24??) it seems to me that it would be possible to generate a theory of advertising and salesmanship from a control theory standpoint. If you inspect a contemporary economics introductory text you won't find an explaination of either advertising or salesmanship-- this is I think most peculiar. There is also a control theory explalination for are known as 25) Veblenian price effects.
Understand I'm not claiming that above examples necesarily amount to a comprehesive alternative model of the economy, but at least in my own view the examples are sufficiently numerous that one might be persuaded that over time and with more hands involved it would be possible to create a viable model of the economy which would be based upon a control theory foundation. And, as best I can see a realization of such an alternative economic conception would not require further developments in control theory in order to be carried out.
I wish to thank you for providing me with what amounts to what I regard as an ideal audience-- that is an audience that is sufficiently informed concerning a basic context, yet skeptical concerning the argument involved. Simply listing the work already done, as in the above section, is something I've never actually done-- not in anything approaching the way I've done here in the listing. After all why should I write down this stuff when its all in my head? But, the neccesity of writting it down in the process of attempting to communicate to a skeptical audience has made for a marked change in the way I perceive it myself.
Bill Williams
···
-----Original Message-----
From: Control Systems Group Network (CSGnet) on behalf of Bruce Gregory
Sent: Sun 12/7/2003 8:06 AM
To: CSGNET@listserv.uiuc.edu
Subject: Love and Hate
[From Bruce Gregory (2003.12.07.0905)]
While I like Rick's morality tale that I have a love/hate relationship
with PCT, I'm not sure there is enough there to either love or hate.
PCT is a simple model of purposeful behavior. To the extent you can
make use of it, it is a superior tool. All the messy neurology and
networking is hidden in the perceptual function, and that's a good
thing, because we have no useful way to model this complexity--yet.
HPCT is somewhat more problematic. I've always been bothered by the
question as to how the hierarchy decides what goals to pursue and does
so quickly enough to be adaptive. This process involves, as far as I
can see, two mechanisms. Reference levels established from above and
same-level systems with higher gain dominating systems with lower
gain. Beyond that there seems little more to say at this time.
Economics can certainly use good models, but until HPCT provides a more
detailed picture of perceptual functions and the role they play in
cooperative behavior, I suspect little progress with be made from the
control theory perspective.
I'm not sure why this description strikes anyone as involving a
conflict between love and hate, but I can live with that.
Remember Pearl Harbor!
Bruce Gregory
"Everything that needs to be said has already been said. But since no
one was listening, everything must be said again."
Andre Gide