2006Journal of Hubei University of EconomicsRequires access

An Analysis of the Self-organization Theory of Market Running and Evolution

Zhang Jun

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Abstract

The reason why market is a self-organization system is that it has a running and evolution process which is characteristic of a self-organization.According to the self-organization theory,the operation process of the law of value is nonlinear interaction,and the normal situation of market is a kind of disequilibrium.The way to keep the stability and order of the market is to input materials,power and information flow from outside so as to reduce the entropy of the market system.To deal with the relationship between the government and the market properly,we should give priority to the market self-organization while paying attention to the government's effects on the market system from outside.

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The reason why market is a self-organization system is that it has a running and evolution process which is characteristic of a self-organization.According to the self-organization theory,the operation process of the law of value is nonlinear interaction,and the normal situation of market is a kind of disequilibrium.The way to keep the stability and order of the market is to input materials,power and information flow from outside so as to reduce the entropy of the market system.To deal with the relationship between the government and the market properly,we should give priority to the market self-organization while paying attention to the government's effects on the market system from outside.

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Available abstract

The reason why market is a self-organization system is that it has a running and evolution process which is characteristic of a self-organization.According to the self-organization theory,the operation process of the law of value is nonlinear interaction,and the normal situation of market is a kind of disequilibrium.The way to keep the stability and order of the market is to input materials,power and information flow from outside so as to reduce the entropy of the market system.To deal with the relationship between the government and the market properly,we should give priority to the market self-organization while paying attention to the government's effects on the market system from outside.

Key concepts: Disequilibrium, Order (exchange), Self-organization, Government (linguistics), Factor market, Market power, Economics, Value (mathematics)

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