ABSTRACT

The illusion that the so-called "free" market is sustained by the unconstrained decisions of its members rests on the assumption that the behavioral and motivational patterns of the micro-units can be traced back to spontaneous choices among alternative action directives. The true dichotomy between the possible types of industrial market organization is a different one. One might feel tempted to answer that the introduction of Control into the motions of a market transforms the economic problem into an engineering problem. The thermostat and similar servomechanisms seem now to reappear as legitimate analogues of controlled market processes. Like the other sciences whose concern is with general laws, traditional Economics avails itself of the hypothetico-deductive method. Its theorems are derived in a syllogistic demonstration from a set of highest-level hypotheses the content of which we have since formalized in the configuration and the operational principles of the hybrid model.