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Ricardo Hausmann & J. Doyne Farmer on Evolving Technologies & Market Ecologies (EPE 03)

COMPLEXITY

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Market as a Self-Organizing System

The market functions like a self-organizing system due to the concept of the invisible hand, where finance plays a significant role. Adam Smith was one of the first to recognize the market's ability to self-regulate and achieve equilibrium through price mechanisms. Prices act as an information system that enables the calculation of profits, determined by the price difference between goods produced and imported.

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