[From Rick Marken (2015.07.16.1500)]
Frank Lenk (2015.07.16.0738)
FL: Rick, I re-read your H. Economicus article. My criticism of it would be that it attempts to model the macro economy directly, and it would be much more convincing if we could model the economy as emerging from the control of perception going on by the individual agents that compose it.
RM: That was Bill Powers' idea as well and he started doing some of the modeling. I'm afraid that approach never really captured my fancy because it left out what I (and Adam Smith -- the real one) thought is a particularly important aspect of an economy -- the fact that the goods and services people control for are the result of specialized production. And the specialized producing is a result of many people working together. So there are people who produce food, others who produce aircraft, others who make clothing, others who provide childcare, etc. But the individuals involved in the specialized production want not only the stuff that they produce but stuff that others produce as well. So people who produce produce/service A are also controlling for some amount of product/service B, C, D, etc that are produced by others. This is hard to capture when you model the economy as a set of individual control systems.
FL: I think much of what we call economics is simply what results from people trying to control the amount of food on the table for their families. It goes beyond that, of course, but maybe that is a better starting point for an economic model based on PCT.
RM: Yes, I think the main problem with my H. Economicus model was that it was too "aggregate". I think a good model of the economy will lie between the individual agent approach and the totally aggregate approach. I was starting to work on such a model but I got diverted. If I can ever finish what I'm working on now I will go back to it so any discussion of economic issues that goes on now will certainly be useful.
RM: I think the most fundamental thing that should be taken into account in a theory of the economy that is not taken into account by current economic theory is the fact that consumers and producers are the same people. So the economy is a closed loop system where people (control systems) are producing (output) goods/services for themselves (input). I developed the H. Economicus model as a start at representing the economy this way -- as a closed loop rather than an open loop system.
Richard S. Marken
Author of <https://urldefense.proofpoint.com/v2/url?u=http-3A__www.amazon.com_Doing-2DResearch-2DPurpose-2DExperimental-2DPsychology_dp_0944337554_ref-3Dsr-5F1-5F1-3Fie-3DUTF8-26qid-3D1407342866-26sr-3D8-2D1-26keywords-3Ddoing-2Bresearch-2Bon-2Bpurpose&d=AwMFaQ&c=8hUWFZcy2Z-Za5rBPlktOQ&r=-dJBNItYEMOLt6aj_KjGi2LMO_Q8QB-ZzxIZIF8DGyQ&m=CJse8qdQ_2DVeoBLZAJCgZ3Fd7ehSRk94j8DU1hgMb0&s=wPCvr3MJt-irxaZpJutNhyuV6tmWkMUAU8WUBLp2XHU&e=>Doing Research on Purpose.
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