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	<title>self-organization &#8211; An Autonomous Agent</title>
	<atom:link href="/category/self-organization/feed/" rel="self" type="application/rss+xml" />
	<link>/</link>
	<description>exploring the noosphere</description>
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		<title>Scale – Geoffrey West</title>
		<link>/2018/08/scale-geoffrey-west/</link>
				<comments>/2018/08/scale-geoffrey-west/#disqus_thread</comments>
				<pubDate>Sun, 12 Aug 2018 03:54:09 +0000</pubDate>
		<dc:creator><![CDATA[anautonomousagent]]></dc:creator>
				<category><![CDATA[biology]]></category>
		<category><![CDATA[book]]></category>
		<category><![CDATA[civilization]]></category>
		<category><![CDATA[complexity theory]]></category>
		<category><![CDATA[didier sornette]]></category>
		<category><![CDATA[dragon-king]]></category>
		<category><![CDATA[earth]]></category>
		<category><![CDATA[ecology]]></category>
		<category><![CDATA[economics]]></category>
		<category><![CDATA[geoffrey west]]></category>
		<category><![CDATA[physics]]></category>
		<category><![CDATA[power law]]></category>
		<category><![CDATA[santa fe institute]]></category>
		<category><![CDATA[science]]></category>
		<category><![CDATA[self-organization]]></category>
		<category><![CDATA[social behavior]]></category>
		<category><![CDATA[sociobiology]]></category>
		<category><![CDATA[socionomics]]></category>

		<guid isPermaLink="false">/?p=2552</guid>
				<description><![CDATA[Scale, by Geoffrey West, is a thought provoking book about coarse grained quantitative network theories which concern the entire human species and its interaction with the environment. Although verbose — as I think the intended audience is upper high school and entry-level college — it is clear in its depictions and explanations. This book is [&#8230;]]]></description>
								<content:encoded><![CDATA[<p><a href="http://a.co/0tTatb5">Scale</a>, by Geoffrey West, is a thought provoking book about coarse grained quantitative network theories which concern the entire human species and its interaction with the environment. Although verbose — as I think the intended audience is upper high school and entry-level college — it is clear in its depictions and explanations. This book is an important summary of really profound work and research performed at the Santa Fe Institute. And it is a great introduction to understanding power laws and scaling in biology and network topologies.</p>
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		<title>Hidden Forces &#8211; Interview Series</title>
		<link>/2017/12/hidden-forces-interview-series/</link>
				<comments>/2017/12/hidden-forces-interview-series/#disqus_thread</comments>
				<pubDate>Thu, 28 Dec 2017 22:13:13 +0000</pubDate>
		<dc:creator><![CDATA[anautonomousagent]]></dc:creator>
				<category><![CDATA[artificial intelligence]]></category>
		<category><![CDATA[complexity theory]]></category>
		<category><![CDATA[consciousness]]></category>
		<category><![CDATA[currency]]></category>
		<category><![CDATA[economics]]></category>
		<category><![CDATA[geoffrey west]]></category>
		<category><![CDATA[Godel]]></category>
		<category><![CDATA[investing]]></category>
		<category><![CDATA[ludwig wittgenstein]]></category>
		<category><![CDATA[mathematics]]></category>
		<category><![CDATA[ray monk]]></category>
		<category><![CDATA[santa fe institute]]></category>
		<category><![CDATA[self-organization]]></category>
		<category><![CDATA[social behavior]]></category>
		<category><![CDATA[socionomics]]></category>
		<category><![CDATA[youtube]]></category>

		<guid isPermaLink="false">/?p=2528</guid>
				<description><![CDATA[Hidden Forces, hosted by Demetri Kofinas is an nice set of interviews with various people on topics including: finance, complexity, mathematics, and cryptocurrencies. I struggled listening to some of the interviewees because I did not agree with their ideas or conclusions; but I guess it is good to have conflicting opinions in order to encourage [&#8230;]]]></description>
								<content:encoded><![CDATA[<p><a href="https://www.youtube.com/channel/UC8URhgYos5fjHqFSO4RSIEg">Hidden Forces</a>, hosted by Demetri Kofinas is an nice set of interviews with various people on topics including: finance, complexity, mathematics, and cryptocurrencies. I struggled listening to some of the interviewees because I did not agree with their ideas or conclusions; but I guess it is good to have conflicting opinions in order to encourage debate in the comments and to help review one&#8217;s own opinions and understandings. Regardless, Kofinas provides a highly accessible medium through which advanced ideas can be grasped.</p>
<p>I first ran across Hidden Forces while listening to the <a href="https://youtu.be/NxERVnvHV4c">interview with Ray Monk</a> about philosophical mathematics. Monk&#8217;s narration on the work of Frege, Russell, Whitehead, Wittgenstein, and Gödel is excellent &#8211; by far one of the clearest and easiest to grasp. It was learning about these paradigms and paradoxes of mathematics via <a href="https://anautonomousagent.com/2012/12/godel-escher-bach-douglas-hofstadter/">Hofstadter&#8217;s famous book</a> which led me to start this website.</p>
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		<title>Thoughts &#8211; Autocosmocracy</title>
		<link>/2016/05/thoughts-autocosmocracy/</link>
				<comments>/2016/05/thoughts-autocosmocracy/#disqus_thread</comments>
				<pubDate>Thu, 12 May 2016 17:49:57 +0000</pubDate>
		<dc:creator><![CDATA[anautonomousagent]]></dc:creator>
				<category><![CDATA[autocosmocracy]]></category>
		<category><![CDATA[government]]></category>
		<category><![CDATA[political science]]></category>
		<category><![CDATA[politics]]></category>
		<category><![CDATA[self-organization]]></category>
		<category><![CDATA[social behavior]]></category>
		<category><![CDATA[sociology]]></category>
		<category><![CDATA[thoughts]]></category>

		<guid isPermaLink="false">https://anautonomousagent.com/?p=1554</guid>
				<description><![CDATA[Order can exist without a hierarchy, yet I constantly confront the word anarchy in contexts which assume its manipulated definition of disorder. This association degrades the ideas of political anarchists. To remedy this issue, I propose a new word: Autocosmocracy &#8211; a form of society in which the political relations between its members, without the aide of any hierarchical institution, continually [&#8230;]]]></description>
								<content:encoded><![CDATA[<p>Order can exist without a hierarchy, yet I constantly confront the word <em>anarchy</em> in contexts which assume its manipulated definition of disorder. This association degrades the ideas of political anarchists. To remedy this issue, I propose a new word:</p>
<blockquote><p>Autocosmocracy &#8211; a form of society in which the political relations between its members, without the aide of any hierarchical institution, continually gives rise to a self-organized society. A continuously existing society without a higher power structure; a system where authority lies in the absolute freedom of the individual. All members are autonomous agents.</p></blockquote>
<p>The world of the biologist is filled with organisms which are self-organized. In the natural sciences there are numerous phenomena in which order arises out of agents acting autonomously. Is not man himself a biological creature in the physical world?</p>
<p>Imagine a hypothetical situation where the form of civilization is an autocosmocracy &#8212; all individuals completely autonomous, bound by no institution. I would postulate that inevitably, after a certain number of generations, the civilization would form groups due to scarcity; and that these distinct groups will form their own government. These new groups will throw away the autocosmocratic forms and create novel political frameworks in order to achieve various goals. For instance, there is great dominating strength in having a mass of brutish men who will obey all commands unquestioningly. In other words, in an initial state of complete freedom and liberty, humans will group and band together. It can be shown mathematically that this will be the equilibrium state. Those individuals who fail to join a group will be out competed or destroyed by those who do join a group.</p>
<p>A similar situation occurs in the distributed cryptocurrency mining networks. This system, which is initially distributed with all individual miners acting autonomously, inevitably transforms into a network of groups due to competition and scarcity. So the natural question arises: how to prevent the formation of such groups in the presence of scarcity? Or is it a better question to ask how to eliminate scarcity?</p>
<p>In terms of Plato&#8217;s cave of shadows, it would be a society in which all members are able to discover the source of the shadows. All members would exist as philosopher kings.</p>
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		<title>Steps to an Ecology of Mind &#8211; Gregory Bateson</title>
		<link>/2016/03/steps-to-an-ecology-of-mind-gregory-bateson/</link>
				<comments>/2016/03/steps-to-an-ecology-of-mind-gregory-bateson/#disqus_thread</comments>
				<pubDate>Mon, 21 Mar 2016 17:24:53 +0000</pubDate>
		<dc:creator><![CDATA[anautonomousagent]]></dc:creator>
				<category><![CDATA[anthropology]]></category>
		<category><![CDATA[book]]></category>
		<category><![CDATA[consciousness]]></category>
		<category><![CDATA[cybernetics]]></category>
		<category><![CDATA[gregory bateson]]></category>
		<category><![CDATA[nora bateson]]></category>
		<category><![CDATA[psychology]]></category>
		<category><![CDATA[science]]></category>
		<category><![CDATA[self-organization]]></category>
		<category><![CDATA[self-reference]]></category>
		<category><![CDATA[social behavior]]></category>
		<category><![CDATA[sociology]]></category>

		<guid isPermaLink="false">https://anautonomousagent.com/?p=1485</guid>
				<description><![CDATA[The papers, essays, and lectures contained in Steps to an Ecology of Mind showcase Gregory Bateson&#8217;s incredibly unique perspective. Due to the wide range of discussion within this collection, it is very difficult to write a concise summary. There are a few points which made a lasting impact in my mind. He explains the levels [&#8230;]]]></description>
								<content:encoded><![CDATA[<p>The papers, essays, and lectures contained in <a href="http://amzn.com/0226039056" target="_blank">Steps to an Ecology of Mind</a> showcase Gregory Bateson&#8217;s incredibly unique perspective. Due to the wide range of discussion within this collection, it is very difficult to write a concise summary. There are a few points which made a lasting impact in my mind.</p>
<p>He explains the levels of learning and how the animal mind can &#8220;learn about learning&#8221; and &#8220;think about thinking&#8221;; concerning humans &#8211; they can reach a third and possibly fourth level in this learning recursion hierarchy. He discusses this in the context of various subjects: anthropology, psychology, evolution, information, ecology, cybernetics and epistomoglogy in general.</p>
<p>He emphasizes that western science should adjust the way it thinks about <em>relationship and form</em> and discusses how these are relavant to the study of <em>matter and energy</em>. He questions the western conception of mammalian emotions, aesthetics, and the ego-self. On several occasions I found myself with the desire to re-read <a href="https://anautonomousagent.com/2012/12/godel-escher-bach-douglas-hofstadter/" target="_blank">Godel, Escher, Bach by Douglas Hofstadter</a>. Both books I think contain some overlap in their treatment of information and the mind. Overall, Bateson was an incredible thinker and you will improve your intellect by reading this collection of work.</p>
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		<title>On the Distribution of Kingdom/Dynasty/Government Lengths</title>
		<link>/2014/05/on-the-distribution-of-kingdomdynastygovernment-lengths/</link>
				<comments>/2014/05/on-the-distribution-of-kingdomdynastygovernment-lengths/#disqus_thread</comments>
				<pubDate>Thu, 29 May 2014 16:41:00 +0000</pubDate>
		<dc:creator><![CDATA[anautonomousagent]]></dc:creator>
				<category><![CDATA[anthropology]]></category>
		<category><![CDATA[complexity theory]]></category>
		<category><![CDATA[geoffrey west]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[mathematics]]></category>
		<category><![CDATA[politics]]></category>
		<category><![CDATA[power law]]></category>
		<category><![CDATA[self-organization]]></category>
		<category><![CDATA[social behavior]]></category>

		<guid isPermaLink="false">https://anautonomousagent.com/?p=57</guid>
				<description><![CDATA[Do there exist studies on the distribution of the lengths of kingdoms and dynasties &#8212; &#160;distinct political entities &#8212; since the 3rd millennium B.C.E.? It seems likely that someone has already studied this topic, but I can not find any papers online. To explain, I have included a file, here, containing the beginning and end [&#8230;]]]></description>
								<content:encoded><![CDATA[<p>Do there exist studies on the distribution of the lengths of kingdoms and dynasties &#8212; &nbsp;distinct political entities &#8212; since the 3rd millennium B.C.E.? It seems likely that someone has already studied this topic, but I can not find any papers online. To explain, I have included a file, <a href="//speedy.sh/qez3J/DynastiesAndKingdoms.csv" target="_blank">here</a>, containing the beginning and end dates of about 700 distinct social groups since the dawn of recorded history. It was complied from various Wikipedia pages. I do not doubt that the data is not very reliable, however, graphing the histogram of these lengths, see Figure 1, would provide at least a rough idea of their distribution.</p>
<table align="center" cellpadding="0" cellspacing="0" style="margin-left: auto; margin-right: auto; text-align: center;">
<tbody>
<tr>
<td style="text-align: center;"><a href="//anautonomousagent.com/wp-content/uploads/2014/05/Histogram-of-Dynasty-Kingdom-Lifespan1.png" style="margin-left: auto; margin-right: auto;"><img border="0" src="//anautonomousagent.com/wp-content/uploads/2014/05/Histogram-of-Dynasty-Kingdom-Lifespan1.png" height="320" width="400" /></a></td>
</tr>
<tr>
<td style="text-align: center;">Figure 1</td>
</tr>
</tbody>
</table>
<p>It does seem that a nice distribution curve exists which models the data. The distribution seems to take the shape of a power law at first glance. Doing some work in R, I found that a power law with one set of parameters fits the tail nicely but fails to fit the first half; and vice versa, a power law with a different set of parameters fits the majority but not the tail. My hypothesis is that a power law with alpha equal to 3 may be the best fit. This is a prediction based on the <a href="//anautonomousagent.com/?p=185" target="_blank">lectures of Geoffrey West</a>, in which he explains that most biological systems exhibit power law distributions with alpha in the 2.5-3.0 range. However, as seen in Figure 2, this does not seem to be the correct range for alpha if a power law is the best fit for this preliminary data.</p>
<table align="center" cellpadding="0" cellspacing="0" style="margin-left: auto; margin-right: auto; text-align: center;">
<tbody>
<tr>
<td style="text-align: center;"><a href="//anautonomousagent.com/wp-content/uploads/2014/05/EmpericalvsTheoretical1.png" style="margin-left: auto; margin-right: auto;"><img border="0" src="//anautonomousagent.com/wp-content/uploads/2014/05/EmpericalvsTheoretical1.png" height="310" width="400" /></a></td>
</tr>
<tr>
<td style="text-align: center;">Figure 2</td>
</tr>
</tbody>
</table>
<div>The tail of the distribution does not fit well with the parameters shown in Figure 2.&nbsp;</div>
<div></div>
<div>I would venture to guess that the data may not be reliable in the displayed tail region. This would suggest that the data may need improvement in the portion where kingdoms and dynasties exist for longer than 200 years. The data I compiled, may of course be missing many kingdoms and dynasties. I believe that my sample is biased, due to these missing kingdoms and dynasties.&nbsp;</div>
<div></div>
<div>To improve this rough sketch of the distribution of kingdoms and dynasties, a highly systematic method must be devised to correctly measure the length of time of existence for any dynasty and kingdom. Also, this method must consistently be able to distinguish when a kingdom or dynasty begins and ends. The general idea is to measure the length of existence of a distinct political entity in a geographical region.</div>
<div></div>
<div>A sample must be obtained which is not biased. A dataset containing the population of all existing kingdoms and dynasties existing since the 3rd millinium B.C.E. would work best. Even so, this would be biased because it would ignore all the dynasties and kingdoms existing before that time.&nbsp;</div>
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		<title>MIT Architecture</title>
		<link>/2013/08/mit-architecture/</link>
				<comments>/2013/08/mit-architecture/#disqus_thread</comments>
				<pubDate>Fri, 30 Aug 2013 20:06:00 +0000</pubDate>
		<dc:creator><![CDATA[anautonomousagent]]></dc:creator>
				<category><![CDATA[architecture]]></category>
		<category><![CDATA[mit]]></category>
		<category><![CDATA[self-organization]]></category>
		<category><![CDATA[video]]></category>

		<guid isPermaLink="false">https://anautonomousagent.com/?p=152</guid>
				<description><![CDATA[The future of building structures and materials will be adaptable, self-assembling, and modular. This MIT video provides a glimpse of these ideas &#8212; on Vimeo here.]]></description>
								<content:encoded><![CDATA[<p>The future of building structures and materials will be adaptable, self-assembling, and modular. This MIT video provides a glimpse of these ideas &#8212; <a href="//vimeo.com/47845783" target="_blank">on Vimeo here</a>.</p>
]]></content:encoded>
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		<title>self-reference</title>
		<link>/2013/03/self-reference/</link>
				<comments>/2013/03/self-reference/#disqus_thread</comments>
				<pubDate>Sat, 02 Mar 2013 21:01:00 +0000</pubDate>
		<dc:creator><![CDATA[anautonomousagent]]></dc:creator>
				<category><![CDATA[animals]]></category>
		<category><![CDATA[anthropocene]]></category>
		<category><![CDATA[art]]></category>
		<category><![CDATA[biology]]></category>
		<category><![CDATA[blog]]></category>
		<category><![CDATA[complexity theory]]></category>
		<category><![CDATA[computer]]></category>
		<category><![CDATA[infinity imagined]]></category>
		<category><![CDATA[information theory]]></category>
		<category><![CDATA[picture]]></category>
		<category><![CDATA[pictures]]></category>
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		<category><![CDATA[self-organization]]></category>
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		<category><![CDATA[website]]></category>

		<guid isPermaLink="false">https://anautonomousagent.com/?p=204</guid>
				<description><![CDATA[self-reference is a really cool tumblr page. I would call some of the images on the site computer art. There are some fascinating images:]]></description>
								<content:encoded><![CDATA[<p><a href="//nldmut.tumblr.com/" target="_blank">self-reference</a> is a really cool tumblr page. I would call some of the images on the site computer art. There are some fascinating images:</p>
<div style="clear: both; text-align: center;"><a href="//anautonomousagent.com/wp-content/uploads/2013/03/tumblr_mis8qsAbmS1qhg5wno3_5001.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="265" src="//anautonomousagent.com/wp-content/uploads/2013/03/tumblr_mis8qsAbmS1qhg5wno3_5001.jpg" width="400" /></a></div>
<p></p>
<div style="clear: both; text-align: center;"><a href="//anautonomousagent.com/wp-content/uploads/2013/03/tumblr_m9d6okFvgZ1qf91zfo1_12801.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="//anautonomousagent.com/wp-content/uploads/2013/03/tumblr_m9d6okFvgZ1qf91zfo1_12801.jpg" width="315" /></a></div>
<div style="clear: both; text-align: center;"></div>
<div style="clear: both; text-align: center;"><a href="//anautonomousagent.com/wp-content/uploads/2013/03/tumblr_miofldsEmX1rks7exo7_4001.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="//anautonomousagent.com/wp-content/uploads/2013/03/tumblr_miofldsEmX1rks7exo7_4001.jpg" width="320" /></a></div>
<div style="clear: both; text-align: center;"></div>
<div style="clear: both; text-align: center;"><a href="//anautonomousagent.com/wp-content/uploads/2013/03/tumblr_m4uifl9IK71qbc6edo1_12801.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="193" src="//anautonomousagent.com/wp-content/uploads/2013/03/tumblr_m4uifl9IK71qbc6edo1_12801.jpg" width="400" /></a></div>
<div style="clear: both; text-align: center;"></div>
<div style="clear: both; text-align: center;"><a href="//anautonomousagent.com/wp-content/uploads/2013/03/tumblr_m5bqyj06Zn1qgkoejo4_12801.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="266" src="//anautonomousagent.com/wp-content/uploads/2013/03/tumblr_m5bqyj06Zn1qgkoejo4_12801.jpg" width="400" /></a></div>
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		<title>Didier Sornette: Predicting risk</title>
		<link>/2013/02/didier-sornette-predicting-risk/</link>
				<comments>/2013/02/didier-sornette-predicting-risk/#disqus_thread</comments>
				<pubDate>Sun, 03 Feb 2013 14:36:00 +0000</pubDate>
		<dc:creator><![CDATA[anautonomousagent]]></dc:creator>
				<category><![CDATA[anthropocene]]></category>
		<category><![CDATA[biology]]></category>
		<category><![CDATA[complexity theory]]></category>
		<category><![CDATA[didier sornette]]></category>
		<category><![CDATA[dragon-king]]></category>
		<category><![CDATA[education]]></category>
		<category><![CDATA[interview]]></category>
		<category><![CDATA[math]]></category>
		<category><![CDATA[physics]]></category>
		<category><![CDATA[science]]></category>
		<category><![CDATA[self-organization]]></category>
		<category><![CDATA[video]]></category>
		<category><![CDATA[youtube]]></category>

		<guid isPermaLink="false">https://anautonomousagent.com/?p=247</guid>
				<description><![CDATA[Very interesting video on &#8220;Where are we going? And what can we do?&#8221; about financial markets, critical points, ecology, biology, and other issues of the Anthropocene by Didier Sornette. Humans are growing at a super-exponential rate, so what does this mean? He also points out the importance of non-linear behavior in markets and the concept [&#8230;]]]></description>
								<content:encoded><![CDATA[<p><a href="//vimeo.com/45469209" target="_blank" rel="noopener">Very interesting video</a> on &#8220;Where are we going? And what can we do?&#8221; about financial markets, critical points, ecology, biology, and other issues of the <a href="//ttrott.blogspot.com/2013/01/the-anthropocene-journal.html">Anthropocene</a> by <a href="//ttrott.blogspot.com/2013/01/why-stock-markets-crash-didier-sornette.html">Didier Sornette</a>. Humans are growing at a super-exponential rate, so what does this mean? He also points out the importance of <a href="//ttrott.blogspot.com/2012/12/phase-transitions-and-signs-of-life.html">non-linear behavior in markets</a> and the concept of <a href="//arxiv.org/abs/0907.4290" target="_blank" rel="noopener">Dragon-Kings</a>. Also, <a href="//youtu.be/7jncWyx3I94" target="_blank" rel="noopener">here is a link</a> to a good interview with Sornette thanks to <a href="//www.youtube.com/user/zurichminds" target="_blank" rel="noopener">ZURICH.MINDS</a>.</p>
<p>For anyone interested in watching some of his lectures, <a href="//videolectures.net/didier_sornette/" target="_blank" rel="noopener">here is a link</a>.</p>
<div class="youtube"
     id="bAKWVTb-AKA"
     style="width: 100%; height: 360px;">
</div>
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		<item>
		<title>An Organization which Creates a Market for Clean Air</title>
		<link>/2013/01/an-organization-which-creates-a-market-for-clean-air/</link>
				<comments>/2013/01/an-organization-which-creates-a-market-for-clean-air/#disqus_thread</comments>
				<pubDate>Sat, 05 Jan 2013 00:41:00 +0000</pubDate>
		<dc:creator><![CDATA[anautonomousagent]]></dc:creator>
				<category><![CDATA[complexity theory]]></category>
		<category><![CDATA[conservation]]></category>
		<category><![CDATA[economics]]></category>
		<category><![CDATA[finance]]></category>
		<category><![CDATA[investing]]></category>
		<category><![CDATA[science]]></category>
		<category><![CDATA[self-organization]]></category>
		<category><![CDATA[stocks]]></category>
		<category><![CDATA[thoughts]]></category>
		<category><![CDATA[warren buffett]]></category>

		<guid isPermaLink="false">https://anautonomousagent.com/?p=328</guid>
				<description><![CDATA[This post is a sequel to a previous story. Warren, Ben, David, and Taylor meet again.  This time they are violently coughing. Ben: Why is the air is so dirty? Taylor: Yes, I can hardly see more than a mile through the pollution. David: It&#8217;s sad that we have done this to our once beautiful [&#8230;]]]></description>
								<content:encoded><![CDATA[<p>This post is a sequel to a <a href="//ttrott.blogspot.com/2013/01/down-rabbit-hole.html" target="_blank" rel="noopener">previous story</a>.</p>
<p>Warren, Ben, David, and Taylor meet again.  This time they are violently coughing.</p>
<p>Ben: Why is the air is so dirty?</p>
<p>Taylor: Yes, I can hardly see more than a mile through the pollution.</p>
<p>David: It&#8217;s sad that we have done this to our once beautiful city. Will we ever be able to clean the air?</p>
<p>Ben: Not sure, perhaps Warren has another great idea?</p>
<p>Warren: I have an idea, but I am not sure if it will work. More of hypothesis really&#8230;</p>
<p>David: Any idea is a good idea in these depressing times.</p>
<p>Taylor: Please tell us your idea Warren.</p>
<p>Warren: Well, it&#8217;s similar to that idea I had along time ago about pieces of the paper.</p>
<p>Ben: Yes! How could we forget, that idea made us very rich!</p>
<p>David: Make pieces of paper to clean air?</p>
<p>Taylor: I don&#8217;t see the point yet, but please continue.</p>
<p>Warren: Just think of these figures &#8212; the average human lives <a href="https://www.cia.gov/library/publications/the-world-factbook/rankorder/2102rank.html" target="_blank" rel="noopener">67 years</a>; this person will inhale about <a href="//health.howstuffworks.com/human-body/systems/respiratory/question98.htm" target="_blank" rel="noopener">11,000</a> to 14,000 liters of air each day; thus, in a life-time a person will inhale about 6.5 billion liters of air.</p>
<p>David: Wow! that seems like an enormous quantity of air.</p>
<p>Warren: It&#8217;s about the volume of 2,600 Olympic-size swimming pools.</p>
<p>Taylor: Remarkable when you put it into perspective.</p>
<p>Ben: What do these figures mean?</p>
<p>Warren: Ah, well they provide an upper estimate on the volume of air a person needs to live for a life-time. Now, we can place a value on clean-air.</p>
<p>Ben: With pieces of paper?</p>
<p>Warren: Yes, exactly.</p>
<p>David: Each piece of paper could be worth a life-time of clean air?</p>
<p>Taylor: Interesting&#8230;</p>
<p>Warren: Sounds like a good idea, right?</p>
<p>Ben: I think so, but there are some issues with this idea.</p>
<p>Warren: Please explain.</p>
<p>Ben: Well, what if a person does not own one of these pieces of paper? Do they not get to breathe? It does not seem possible to force people to buy these papers.</p>
<p>Warren: I would never allow that to happen! Rather, these pieces of paper are only theoretical rights to clean air. Much like the idea of paper representing the value of a company. The paper only obtains value through trading in a market.</p>
<p>David: I see! Through the complex interaction of market agents we will be able to establish the value of clean air.</p>
<p>Taylor: Not to mention the money we will intially raise by selling these pieces of paper.</p>
<p>Ben: Just like Warren&#8217;s other idea!</p>
<p>David: Ironically, people would expect the value to increase as pollution gets worse.</p>
<p>Warren: And, as the value increases, a larger amount of money can be raised by additional issuance of these papers. With this money we could develop sophisticated clean air technologies.</p>
<p>David: If the technologies work then the value of the papers should decrease.</p>
<p>Warren: True.</p>
<p>Ben: I like the idea. But I feel it would not work. An international organization would have to be responsible for issuing these pieces of paper; the organization&#8217;s sole purpose would be to clean and reduce pollution. And, as we know from history, corruption is always a problem.</p>
<p>Taylor: I agree. If the people running the organization don&#8217;t spend the money properly, the whole idea will crumble.</p>
<p>Warren: Well, like I said before, I am not sure if the idea will work.</p>
<p>David: I think it&#8217;s at least worth a try.</p>
<p>Ben: Agreed!</p>
<p>Taylor: So&#8230; how do we get this idea off the ground?</p>
]]></content:encoded>
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		<item>
		<title>The Creation of Stocks</title>
		<link>/2013/01/the-creation-of-stocks/</link>
				<comments>/2013/01/the-creation-of-stocks/#disqus_thread</comments>
				<pubDate>Thu, 03 Jan 2013 20:52:00 +0000</pubDate>
		<dc:creator><![CDATA[anautonomousagent]]></dc:creator>
				<category><![CDATA[autonomous agent]]></category>
		<category><![CDATA[Bach]]></category>
		<category><![CDATA[currency]]></category>
		<category><![CDATA[economics]]></category>
		<category><![CDATA[escher]]></category>
		<category><![CDATA[Godel]]></category>
		<category><![CDATA[investing]]></category>
		<category><![CDATA[self-organization]]></category>
		<category><![CDATA[stocks]]></category>
		<category><![CDATA[strange loop]]></category>
		<category><![CDATA[thoughts]]></category>
		<category><![CDATA[warren buffett]]></category>

		<guid isPermaLink="false">https://anautonomousagent.com/?p=340</guid>
				<description><![CDATA[Warren, Ben, David, and Taylor are four friends who meet on weekends to discuss various ideas and have a good time. They are together one night and begin discussing a business venture. Warren: I know a great idea! Ben: Sure, tell us another one of your &#8220;great&#8221; ideas. I hope this one is better than [&#8230;]]]></description>
								<content:encoded><![CDATA[<p>Warren, Ben, David, and Taylor are four friends who meet on weekends to discuss various ideas and have a good time. They are together one night and begin discussing a business venture.</p>
<p>Warren: I know a great idea! </p>
<p>Ben: Sure, tell us another one of your &#8220;great&#8221; ideas. I hope this one is better than that silly farming device.</p>
<p>David: Alright, let Warren indulge us.</p>
<p>Warren: Ok&#8230; so, what if we printed pieces of paper and told people that they were worth the value of a certain company?</p>
<p>Taylor: Is that your idea? Hahahaha, what could that possibly achieve? I am leaving.</p>
<p>Warren: No, wait! Just think about it. If we printed a fixed number of these papers and said that the sum of the them are worth the value of the company, then we could sell them for that value to people.</p>
<p>Ben: Yes, but what fool would fall for such an obvious scam.</p>
<p>Taylor: What value? How can pieces of paper be worth more than paper? How can we claim that they are worth the value of a certain company?</p>
<p>David: You know, I think Warren has a point. All we have to do is sound reputable and create a way for these pieces of paper to be traded.</p>
<p>Warren: See! David is following me!</p>
<p>David: If this were a scam, we would just sell the papers and run off with the money.</p>
<p>Ben: But isn&#8217;t that your plan?</p>
<p>Warren: Hmm&#8230; True. But in this case, the people are able to trade with each other to get their money back and possibly a profit.</p>
<p>Ben: In fact the potential for a profit would be the only reason for buying these pieces of paper.</p>
<p>Taylor: Hahahah, so this is a giant Ponzi Scheme?</p>
<p>David: Yes, it does seem so, now that you mention it.</p>
<p>Warren: No, there is a difference. We will simply be selling pieces of paper. The &#8220;Ponzi Scheme&#8221; that Taylor mentioned would be caused by the infinite self-repeating pattern of people buying the paper from each other and then selling it to other people for a return.</p>
<p>David: That is a very strange concept. Kinda like a strange loop.</p>
<p>Ben: Ok, but wouldn&#8217;t each person value the pieces of paper differently, based on their opinion on the value of the company?</p>
<p>Taylor: Yes, person Expensive may be willing to pay ten the piece of paper; while person Cheap may only pay ten for the same piece of paper.</p>
<p>David: Then this is idea is doomed. It will never work.</p>
<p>Ben: Too much chaos! </p>
<p>Warren: No! Someone, perhaps seeing an opportunity to profit will establish a definite lower bound to the value of the piece of paper. Let&#8217;s say that lower bound is ten; i.e., there is a person who believes that he can buy a piece of paper for ten and, at a later date, sell it to people for more than ten.</p>
<p>David: Ok. I follow.</p>
<p>Warren: Then, someone else, seeing that there is a potential to make money, will offer 12 for the piece of paper.</p>
<p>Ben: AHH! Yes, a price will dynamically form based on the interactions of all these people.</p>
<p>Taylor: And then?!?!</p>
<p>Warren: Well, then we have a way to sell these pieces of paper for more than the value of paper?</p>
<p>Ben: Yes, precisely.</p>
<p>David: So, by simply saying we have pieces of paper which represent the value of a company we have made a handsome profit?</p>
<p>Warren: Exactly! </p>
<p>Ben: And, in the process we have discovered a way to find the value of a company!</p>
<p>Taylor: Wow! I must say Warren, this is a brilliant idea!</p>
<p>David: What will we do will all this money?</p>
<p>Warren: I think I will buy some of these pieces of paper.</p>
<p>Ben: Me too! And make even more money!</p>
]]></content:encoded>
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