Games and economic misbehaviour

Tom James @ 03-08-2009

wolfram_fractalsGeorge Dyson has an excellent and compelling essay on game theory, economics, information theory, computer science, banking, finance, technology, and John von Neumann:

We are surrounded by codes (some Turing-universal) that make copies of themselves, and by physical machines that spawn virtual machines that in turn spawn demand for more physical machines. Some digital sequences code for spreadsheets, some code for music, some code for operating systems, some code for sprawling, metazoan search engines, some code for proteins, some code for the gears used in numerically-controlled gear-cutting machines, and, increasingly, some code for DNA belonging to individuals who serve as custodians and creators of more code. “It is easier to write a new code than to understand an old one,” von Neumann warned.

The monograph over on Edge discusses von Neumann’s intellectual antecendants and the development of game theory and statistical modelling. It also includes some interesting commentary on our recent economic difficulties. Definitely worth a read.

[image from kevindooley on flickr]


Psychohistory in the real world

Tom James @ 28-07-2009

crowdResearchers at Indiana University believe that it may be possible to create a real-life version of Isaac Asimov’s concept of psychohistory:

Much as meteorologists predict the path and intensity of hurricanes, Indiana University’s Alessandro Vespignani believes we will one day predict with unprecedented foresight, specificity and scale such things as the economic and social effects of billions of new Internet users in China and India, or the exact location and number of airline flights to cancel around the world in order to halt the spread of a pandemic.

Psychohistory as described by Isaac Asimov holds that “while one cannot foresee the actions of a particular individual, the laws of statistics as applied to large groups of people could predict the general flow of future events.”

This certainly seems similar to the ideas of reality mining discussed here:

Vespignani writes that advances in complex networks theory and modeling, along with access to new data, will enable humans to achieve true predictive power in areas never before imagined. This capability will be realized as the one wild card in the mix — the social behavior of large aggregates of humans — becomes more definable through progress in data gathering, new informatics tools and increases in computational power.

It is an exciting direction, and offers the possibility of a black-swan style technological breakthrough. With improved data, through things like spimes and ubiquitous computing, combined with improved data processing techniques and communications there exists the possibility for a new and powerful way of studying, monitoring, and even controlling social and technological developments with precision.

[via Next Big Future][image from woodleywonderworks on flickr]


Making the internet more like E-Coli

Tomas Martin @ 26-10-2007

Does the net work in a similar way to the bacteria that makes us ill?There’s fascinating article on Discover today about a control theorist called John Doyle working on ways to improve internet speeds. He compares the structure of the internet to the E-Coli bacteria – both structures resemble a bow tie in the way they homogenize information or DNA into a small knot in the centre then spread them out to their respective destinations. With the oncoming prospect of RFID on most products and wireless nodes popping up all over the place, having an internet structure that doesn’t collapse under the weight of all the signals broadcast across it is essential. Doyle thinks that by letting computers use more information about internet traffic flow and speed, they can use the quickest route more easily, speeding up transmission of data by a huge amount.

[story via Discover magazine, image by sdbrown]