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      INFORMATION, CHANCE, AND EVOLUTION: Alchian and the economics of self-organization
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      Chapter

      INFORMATION, CHANCE, AND EVOLUTION: Alchian and the economics of self-organization

      DOI link for INFORMATION, CHANCE, AND EVOLUTION: Alchian and the economics of self-organization

      INFORMATION, CHANCE, AND EVOLUTION: Alchian and the economics of self-organization book

      INFORMATION, CHANCE, AND EVOLUTION: Alchian and the economics of self-organization

      DOI link for INFORMATION, CHANCE, AND EVOLUTION: Alchian and the economics of self-organization

      INFORMATION, CHANCE, AND EVOLUTION: Alchian and the economics of self-organization book

      ByArthur De ~ny
      BookUncertainty and Economic Evolution

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      Edition 1st Edition
      First Published 1997
      Imprint Routledge
      Pages 20
      eBook ISBN 9780203980088
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      ABSTRACT

      The strong invisible hand theorem says there is emergent order in human affairs. Smith and Hayek described it; Alchian gave the evolutionary proof He showed that profit maximization is an emergent property of evolution when survival depends on positive profits. I extend Alchian's argument to consider how evolution discovers and adopts successful organizational forms. "Lock-in" on inefficient equilibria occurs, but noise and imitation, the evolutionary operators Alchian stressed, promote learning and adaptation which move the organizing dynamic off inefficient paths. Evolution is orders of magnitude faster than optimization; the relative time scales make the processes observationally distinguishable.

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