On Dynamics: On Stability (2000-)

"The phenomenon of emergence takes place at critical points of instability that arise from fluctuations in the environment, amplified by feedback loops." (Fritjof Capra, "The Hidden Connections", 2002)

"This spontaneous emergence of order at critical points of instability is one of the most important concepts of the new understanding of life. It is technically known as self-organization and is often referred to simply as ‘emergence’. It has been recognized as the dynamic origin of development, learning and evolution. In other words, creativity-the generation of new forms-is a key property of all living systems. And since emergence is an integral part of the dynamics of open systems, we reach the important conclusion that open systems develop and evolve. Life constantly reaches out into novelty." (Fritjof  Capra, "The Hidden Connections", 2002)

"If a network has violently changing properties, it is most probably not very stable. How can we measure stability, if a network remains unchanged? The assessment of stability often requires a test, and this test comes in the form of a perturbation to the network. A stable network should try to restore its original status after a perturbation. However, this is not easy. Most networks are open systems and therefore undergo a continuous series of perturbations." (Péter Csermely, "Weak Links: The Universal Key to the Stabilityof Networks and Complex Systems", 2009)

"Network stability may be a key element in the development of multilevel, nested networks. The formation of nested networks obviously requires at least a few contacts between the bottom networks. However, evolutionary selection requires the independence and at least temporary isolation of the bottom networks themselves. Weak links are probably the only tools for solving this apparent paradox." (Péter Csermely, "Weak Links: The Universal Key to the Stabilityof Networks and Complex Systems", 2009)

"But the history of large systems demonstrates that, once the hurdle of stability has been cleared, a more subtle challenge appears. It is the challenge of remaining stable when the rules change. Machines, like organizations or organisms, that fail to meet this challenge find that their previous stability is no longer of any use. The responses that once were life-saving now just make things worse. What is needed now is the capacity to re-write the procedure manual on short notice, or even (most radical change of all) to change goals." (John Gall, "The Systems Bible: The Beginner's Guide to Systems Large and Small"[Systematics 3^rd Ed.], 2011)

"Classification is only one of the mathematical aspects of catastrophe theory. Another is stability. The stable states of natural systems are the ones that we can observe over a longer period of time. But the stable states of a system, which can be described by potential functions and their singularities, can become unstable if the potentials are changed by perturbations. So stability problems in nature lead to mathematical questions concerning the stability of the potential functions." (Werner Sanns, "Catastrophe Theory" [Mathematics of Complexity and Dynamical Systems, 2012])

"An important aspect of the global theory of dynamical systems is the stability of the orbit structure as a whole. The motivation for the corresponding theory comes from applied mathematics. Mathematical models always contain simplifying assumptions. Dominant features are modeled; supposed small disturbing forces are ignored. Thus, it is natural to ask if the qualitative structure of the set of solutions - the phase portrait - of a model would remain the same if small perturbations were included in the model. The corresponding mathematical theory is called structural stability." (Carmen Chicone, "Stability Theory of Ordinary Differential Equations" [Mathematics of Complexity and Dynamical Systems, 2012])

"This spontaneous emergence of order at critical points of instability, which is often referred to simply as 'emergence', is one of the hallmarks of life. It has been recognized as the dynamic origin of development, learning, and evolution. In other words, creativity-the generation of new forms-is a key property of all living systems." (Fritjof Capra, "The Systems View of Life: A Unifying Vision", 2014)

On Singularity I

"It is possible to pass continuously from any non-singular curve to any other such curve by interposition of other curves in such a way that during this procedure one will meet no other occurrence of singularities, apart from a finite number of times a curve with an ordinary double point, no matter whether the curve has at that point real or imaginary branches." (Felix Klein, "Elementary Mathematics from a Higher Standpoint" Vol III: "Precision Mathematics and Approximation Mathematics", 1928)

"A singularity is a place where the classical concepts of space and time break down as do all the known laws of physics." (Stephen W Hawking, "Breakdown of Predictability in Gravitational Collapse", Physical Review D, 1976) 

"'Catastrophe theory' denotes both a purely mathematical discipline describing certain singularities of smooth maps, as well as the concerted effort to apply these theorems to a wide variety of problems in fields ranging from linguistics and psychology to embryology, evolution, physics, and engineering." (Héctor J Sussmann & Raphael S Zahler, "Catastrophe Theory as Applied to the Social and Biological Sciences: A Critique" Synthese Vol. 37 (2), 1978)

"Topology has been called 'rubber-sheet geometry', and it is helpful to think of the surfaces as made of rubber. They can be deformed in any way at an, as long as they are not torn and as long as no new qualitative features appear on them. That is, the actual behavior surface for a process with two control factors may be any distortion of the canonical cusp surface, but it can have no local singularity more complex than a pleat." (Alexander Woodcock & Monte Davis, "Catastrophe Theory", 1978)

"In fact, all our theories of science are formulated on the assumption that space-time is smooth and nearly flat, so they break down at the big bang singularity, where the curvature of space-time is infinite." (Stephen W Hawking, "A Brief History of Time", 1988)

"The key to making discontinuity emerge from smoothness is the observation that the overall behavior of both static and dynamical systems is governed by what's happening near the critical points. These are the points at which the gradient of the function vanishes. Away from the critical points, the Implicit Function Theorem tells us that the behavior is boring and predictable, linear, in fact. So it's only at the critical points that the system has the possibility of breaking out of this mold to enter a new mode of operation. It's at the critical points that we have the opportunity to effect dramatic shifts in the system's behavior by 'nudging' lightly the system dynamics, one type of nudge leading to a limit cycle, another to a stable equilibrium, and yet a third type resulting in the system's moving into the domain of a 'strange attractor'. It's by these nudges in the equations of motion that the germ of the idea of discontinuity from smoothness blossoms forth into the modern theory of singularities, catastrophes and bifurcations, wherein we see how to make discontinuous outputs emerge from smooth inputs." (John L Casti, "Reality Rules: Picturing the world in mathematics", 1992)

"Catastrophe theory is a local theory, telling us what a function looks like in a small neighborhood of a critical point; it says nothing about what the function may be doing far away from the singularity. Yet most of the applications of the theory [...] involve extrapolating these rock-solid, local results to regions that may well be distant in time and space from the singularity." (John L Casti, "Five Golden Rules", 1995)

"When we examine the modeling literature, its most striking aspect is the predominance of 'flat' linear models. Why is this the case? After all, from a singularity theory viewpoint these linear objects are mathematical rarities. On mathematical grounds we should certainly not expect to see them put forth as credible representations of reality. Yet they are. And the reason is simple: linearity is a neutral assumption that leads to mathematically tractable models. So unless there is good reason to do otherwise, why not use a linear model?" (John L Casti, "Five Golden Rules", 1995)

"The best way to think about singularities is as boundaries or edges of spacetime. In this respect they are not, technically, part of spacetime itself." (Paul Davies," Cosmic Jackpot: Why Our Universe Is Just Right for Life", 2007)

"Catastrophe theory can be thought of as a link between classical analysis, dynamical systems, differential topology (including singularity theory), modern bifurcation theory and the theory of complex systems. [...] The name ‘catastrophe theory’ is used for a combination of singularity theory and its applications. [...] From the didactical point of view, there are two main positions for courses in catastrophe theory at university level: Trying to teach the theory as a perfect axiomatic system consisting of exact definitions, theorems and proofs or trying to teach mathematics as it can be developed from historical or from natural problems. (Werner Sanns, "Catastrophe Theory" [Mathematics of Complexity and Dynamical Systems, 2012])

"Classification is only one of the mathematical aspects of catastrophe theory. Another is stability. The stable states of natural systems are the ones that we can observe over a longer period of time. But the stable states of a system, which can be described by potential functions and their singularities, can become unstable if the potentials are changed by perturbations. So stability problems in nature lead to mathematical questions concerning the stability of the potential functions." (Werner Sanns, "Catastrophe Theory" [Mathematics of Complexity and Dynamical Systems, 2012])

"The primary aspects of the theory of complex manifolds are the geometric structure itself, its topological structure, coordinate systems, etc., and holomorphic functions and mappings and their properties. Algebraic geometry over the complex number field uses polynomial and rational functions of complex variables as the primary tools, but the underlying topological structures are similar to those that appear in complex manifold theory, and the nature of singularities in both the analytic and algebraic settings is also structurally very similar." (Raymond O Wells Jr, "Differential and Complex Geometry: Origins, Abstractions and Embeddings", 2017)

"A theory that involves singularities and involves them unavoidably, moreover, carries within itself the seeds of its own destruction." (Peter Bergmann)

"It is more a philosophy than mathematics, and even as a philosophy it doesn't explain the real world [...] as mathematics, it brings together two of the most basic ideas in modern math: the study of dynamic systems and the study of the singularities of maps. Together, they cover a very wide area - but catastrophe theory brings them together in an arbitrary and constrained way." (Steven Smale)

On Bifurcations I

"It is not enough to know the critical stress, that is, the quantitative breaking point of a complex design; one should also know as much as possible of the qualitative geometry of its failure modes, because what will happen beyond the critical stress level can be very different from one case to the next, depending on just which path the buckling takes. And here catastrophe theory, joined with bifurcation theory, can be very helpful by indicating how new failure modes appear." (Alexander Woodcock & Monte Davis, "Catastrophe Theory", 1978)

"The study of changes in the qualitative structure of the flow of a differential equation as parameters are varied is called bifurcation theory. At a given parameter value, a differential equation is said to have stable orbit structure if the qualitative structure of the flow does not change for sufficiently small variations of the parameter. A parameter value for which the flow does not have stable orbit structure is called a bifurcation value, and the equation is said to be at a bifurcation point." (Jack K Hale & Hüseyin Kocak, "Dynamics and Bifurcations", 1991)

"Fundamental to catastrophe theory is the idea of a bifurcation. A bifurcation is an event that occurs in the evolution of a dynamic system in which the characteristic behavior of the system is transformed. This occurs when an attractor in the system changes in response to change in the value of a parameter. A catastrophe is one type of bifurcation. The broader framework within which catastrophes are located is called dynamical bifurcation theory." (Courtney Brown, "Chaos and Catastrophe Theories", 1995)

"The existence of equilibria or steady periodic solutions is not sufficient to determine if a system will actually behave that way. The stability of these solutions must also be checked. As parameters are changed, a stable motion can become unstable and new solutions may appear. The study of the changes in the dynamic behavior of systems as parameters are varied is the subject of bifurcation theory. Values of the parameters at which the qualitative or topological nature of the motion changes are known as critical or bifurcation values." (Francis C Moona, "Nonlinear Dynamics", 2003)

"In parametrized dynamical systems a bifurcation occurs when a qualitative change is invoked by a change of parameters. In models such a qualitative change corresponds to transition between dynamical regimes. In the generic theory a finite list of cases is obtained, containing elements like ‘saddle-node’, ‘period doubling’, ‘Hopf bifurcation’ and many others." (Henk W Broer & Heinz Hanssmann, "Hamiltonian Perturbation Theory (and Transition to Chaos)", 2009)

"In dynamical systems, a bifurcation occurs when a small smooth change made to the parameter values (the bifurcation parameters) of a system causes a sudden 'qualitative' or topological change in its behaviour. Generally, at a bifurcation, the local stability properties of equilibria, periodic orbits or other invariant sets changes." (Gregory Faye, "An introduction to bifurcation theory",  2011)

"Catastrophe theory can be thought of as a link between classical analysis, dynamical systems, differential topology (including singularity theory), modern bifurcation theory and the theory of complex systems." (Werner Sanns, "Catastrophe Theory" [Mathematics of Complexity and Dynamical Systems, 2012])

"Roughly spoken, bifurcation theory describes the way in which dynamical system changes due to a small perturbation of the system-parameters. A qualitative change in the phase space of the dynamical system occurs at a bifurcation point, that means that the system is structural unstable against a small perturbation in the parameter space and the dynamic structure of the system has changed due to this slight variation in the parameter space." (Holger I Meinhardt, "Cooperative Decision Making in Common Pool Situations", 2012)

"Bifurcation theory is the mathematical study of changes in the qualitative or topological structure of a given family, such as the integral curves of a family of vector fields, and the solutions of a family of differential equations. Most commonly applied to the mathematical study of dynamical systems, a bifurcation occurs when a small smooth change made to the parameter values (the bifurcation parameters) of a system causes a sudden “qualitative” or topological change in its behavior. Bifurcations can occur in both continuous systems (described by ODEs, DDEs, or PDEs) and discrete systems (described by maps)." (Tianshou Zhou, "Bifurcation", 2013)

"The core of bifurcation theory of nonlinear system inevitably falls back to the dynamic analysis of linear ones. Because of that, the fundamental question one may ask is if there exist a linearized DAE system with the same qualitative behavior around fixed points of its nonlinear counterpart." (Ataíde S A.Netoa et al, "Nonlinear dynamic analysis of chemical engineering processes described by differential-algebraic equations systems", 2019)

On Dynamics: On Stability (1975-1999)

"Effect spreads its 'tentacles' not only forwards (as a new cause giving rise to a new effect) but also backwards, to the cause which gave rise to it, thus modifying, exhausting or intensifying its force. This interaction of cause and effect is known as the principle of feedback. It operates everywhere, particularly in all self-organising systems where perception, storing, processing and use of information take place, as for example, in the organism, in a cybernetic device, and in society. The stability, control and progress of a system are inconceivable without feedback." (Alexander Spirkin, "Dialectical Materialism", 1983)

"Structure is the type of connection between the elements of a whole. […] . Structure is a composite whole, or an internally organised content. […] Structure implies not only the position of its elements in space but also their movement in time, their sequence and rhythm, the law of mutation of a process. So structure is actually the law or set of laws that determine a system's composition and functioning, its properties and stability." (Alexander Spirkin, "Dialectical Materialism", 1983)

"Stability theory is the study of systems under various perturbing influences. Since there are many systems, many types of influences, and many equations describing systems, this is an open-ended problem. A system is designed so that it will be stable under external influences. However, one cannot predict all external influences, nor predict the magnitude of those that occur. Consequently, we need control theory. If one is interested in stability theory, a natural result is a theory of control." (Richard E Bellman, "Eye of the Hurricane: An Autobiography", 1984)

"This construction, the horseshoe, has some consequences. First, it yields the fact that homoclinic points do exist and gives a direct construction of them. Second, one obtains such a useful analysis of a general transversal homoclinic point that many properties follow, including sensitive dependence on initial conditions - 'a large number', anyway. Third, one can prove robustness of the horseshoe in a strong global sense structural stability)." (Steven Smale, "What is chaos?", 1990)

"This construction, the horseshoe, has some consequences. First, it yields the fact that homoclinic points do exist and gives a direct construction of them. Second, one obtains such a useful analysis of a general transversal homoclinic point that many properties follow, including sensitive dependence on initial conditions - 'a large number', anyway. Third, one can prove robustness of the horseshoe in a strong global sense structural stability)." (Steven Smale, "What is chaos?", 1990)

"An equilibrium is defined to be stable if all sufficiently small disturbances away from it damp out in time. Thus stable equilibria are represented geometrically by stable fixed points. Conversely, unstable equilibria, in which disturbances grow in time, are represented by unstable fixed points." (Steven H Strogatz, "Non-Linear Dynamics and Chaos, 1994)

"The qualitative structure of the flow can change as parameters are varied. In particular, fixed points can be created or destroyed, or their stability can change. These qualitative changes in the dynamics are called bifurcations , and the parameter values at which they occur are called bifurcation points." (Steven H Strogatz, "Non-Linear Dynamics and Chaos, 1994)

"All systems evolve, although the rates of evolution may vary over time both between and within systems. The rate of evolution is a function of both the inherent stability of the system and changing environmental circumstances. But no system can be stabilized forever. For the universe as a whole, an isolated system, time’s arrow points toward greater and greater breakdown, leading to complete molecular chaos, maximum entropy, and heat death. For open systems, including the living systems that are of major interest to us and that interchange matter and energy with their external environments, time’s arrow points to evolution toward greater and greater complexity. Thus, the universe consists of islands of increasing order in a sea of decreasing order. Open systems evolve and maintain structure by exporting entropy to their external environments." (L Douglas Kiel, "Chaos Theory in the Social Sciences: Foundations and Applications", 1996)

"Where did those symmetries come from? From the even more extensive set of symmetries of the (idealised) uniform state in the infinite dish. The instability of that state caused certain symmetries to be eliminated, but others persist. For target patterns, some rotations and reflections persist. For spirals, what persists is the space-time symmetries 'let time pass and then rotate back'. In a very curious sense, the patterns that we see in the spirals are evidence of other patterns that might have been - the unstable uniform state with its enormous amount of (totally boring) symmetry. They are 'caused' by something that doesn't actually happen." (Ian Stewart, "The Magical Maze: Seeing the world through mathematical eyes", 1997)

"Why don't the chemicals take up the fully symmetric uniform state? Because it is unstable. Any tiny lack of uniformity grows, and destroys the uniform pattern. And in the real world there are always tiny lacks of uniformity - dust motes, bubbles, even just a few molecules vibrating because of heat. (All molecules vibrate because of heat - or more accurately 'heat' is what you get when molecules vibrate - but it only takes a few of them to trigger instability.) The instability is not intuitively obvious, but it's what happens both in the real world and in mathematical models, and here we can take it as given." (Ian Stewart, "The Magical Maze: Seeing the world through mathematical eyes", 1997)

"Complex systems operate under conditions far from equilibrium. Complex systems need a constant flow of energy to change, evolve and survive as complex entities. Equilibrium, symmetry and complete stability mean death. Just as the flow, of energy is necessary to fight entropy and maintain the complex structure of the system, society can only survive as a process. It is defined not by its origins or its goals, but by what it is doing." (Paul Cilliers,"Complexity and Postmodernism: Understanding Complex Systems", 1998)

"Cybernetics is the science of effective organization, of control and communication in animals and machines. It is the art of steersmanship, of regulation and stability. The concern here is with function, not construction, in providing regular and reproducible behaviour in the presence of disturbances. Here the emphasis is on families of solutions, ways of arranging matters that can apply to all forms of systems, whatever the material or design employed. [...] This science concerns the effects of inputs on outputs, but in the sense that the output state is desired to be constant or predictable – we wish the system to maintain an equilibrium state. It is applicable mostly to complex systems and to coupled systems, and uses the concepts of feedback and transformations (mappings from input to output) to effect the desired invariance or stability in the result." (Chris Lucas, "Cybernetics and Stochastic Systems", 1999) 

Tipping Point I

"For any given population of susceptibles, there is some critical combination of contact frequency, infectivity, and disease duration just great enough for the positive loop to dominate the negative loops. That threshold is known as the tipping point. Below the tipping point, the system is stable: if the disease is introduced into the community, there may be a few new cases, but on average, people will recover faster than new cases are generated. Negative feedback dominates and the population is resistant to an epidemic. Past the tipping point, the positive loop dominates .The system is unstable and once a disease arrives, it can spread like wildfire that is, by positive feedback-limited only by the depletion of the susceptible population." (John D Sterman, "Business Dynamics: Systems thinking and modeling for a complex world", 2000)

"If the contact rate, infectivity, and duration of infection are small enough, the system is below the tipping point and stable. Such a situation is known as herd immunity because the arrival of an infected individual does not produce an epidemic (though a few unlucky individuals may come in contact with any infectious arrivals and contract the disease, the group as a community is protected). However, changes in the contact rate, infectivity, or duration of illness can push a system past the tipping point." (John D Sterman, "Business Dynamics: Systems thinking and modeling for a complex world", 2000)

"The existence of the tipping point means it is theoretically possible to completely eradicate a disease. Eradication does not require a perfect vaccine and universal immunization but only the weaker condition that the reproduction rate of the disease fall and remain below one so that new cases arise at a lower rate than old cases are resolved." (John D Sterman, "Business Dynamics: Systems thinking and modeling for a complex world. ", 2000)

"The sharp boundary between an epidemic and stability defined by the tipping point in the deterministic models becomes a probability distribution characterizing the chance an epidemic will occur for any given average rates of interaction, infectivity, and recovery. Likewise, the SI and SIR models assume a homogeneous and well-mixed population, while in reality it is often important to represent subpopulations and the spatial diffusion of an epidemic." (John D Sterman, "Business Dynamics: Systems thinking and modeling for a complex world", 2000)

"In the real world, advertising is expensive and does not persist indefinitely. The marketing plan for most new products includes a certain amount for a kickoff ad campaign and other initial marketing efforts. If the product is successful, further advertising can be supported out of the revenues the product generates. If, however, the product does not take off, the marketing budget is soon exhausted and external sources of adoption fall. Advertising is not exogenous, as in the Bass model, but is part of the feedback structure of the system. There is a tipping point for ideas and new products no less than for diseases." (John D Sterman, "Business Dynamics: Systems thinking and modeling for a complex world", 2000)

"The tipping point is that magic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire." (Malcolm T Gladwell, "The Tipping Point: How Little Things Can Make a Big Difference", 2000)

"This possibility of sudden change is at the center of the idea of the Tipping Point and might well be the hardest of all to accept. [...] The Tipping Point is the moment of critical mass, the threshold, the boiling point." (Malcolm T Gladwell, "The Tipping Point: How Little Things Can Make a Big Difference", 2000)

"But in mathematics there is a kind of threshold effect, an intellectual tipping point. If a student can just get over the first few humps, negotiate the notational peculiarities of the subject, and grasp that the best way to make progress is to understand the ideas, not just learn them by rote, he or she can sail off merrily down the highway, heading for ever more abstruse and challenging ideas, while an only slightly duller student gets stuck at the geometry of isosceles triangles." (Ian Stewart, "Why Beauty is Truth: A history of symmetry", 2007)

"The product that first gets over its own tipping point attracts many consumers and this may make the competing product less attractive. Being the first to reach this tipping point is very important - more important than being the 'best' in an abstract sense." (David Easley & Jon Kleinberg, "Networks, Crowds, and Markets: Reasoning about a Highly Connected World", 2010)

"Stochastic variability and tipping points in the catch are two different dynamical phenomena. Yet they are both compatible with real-world data [...]" (John D W Morecroft, "Strategic Modelling and Business Dynamics: A Feedback Systems Approach", 2015)

On Economics VI (Equilibrium I)

"The general theory of economic equilibrium was strengthened and made effective as an organon of thought by two powerful subsidiary conceptions - the Margin and Substitution. The notion of the Margin was extended beyond Utility to describe the equilibrium point in given conditions of any economic factor which can be regarded as capable of small variations about a given value, or in its functional relation to a given value." (John M Keynes, "Essays In Biography", 1933)

"Perhaps as important is the relation between the existence of solutions to a competitive equilibrium and the problems of normative or welfare economics." (Kenneth J Arrow & Gerard Debreu. "Existence of an equilibrium for a competitive economy", Econometrica: Journal of the Econometric Society, 1954)

"[Equilibrium] is a notion which can be employed usefully in varying degrees of looseness. It is an absolutely indispensable part of the toolbag of the economist and one which he can often contribute usefully to other sciences which are occasionally apt to get lost in the trackless exfoliations of purely dynamic systems." (Kenneth Boulding, The Skills of the Economist", Journal of Political Economy 67 (1), 1959)

"The ability to work with systems of general equilibrium is perhaps one of the most important skills of the economist - a skill which he shares with many other scientists, but in which he has perhaps a certain comparative advantage." (Kenneth Boulding, "The Skills of the Economist", Journal of Political Economy 67 (1), 1959)

"An economy may be in equilibrium from a short-period point of view and yet contain within itself incompatibilities that are soon going to knock it out of equilibrium." (Joan Robinson, "Essays in the Theory of Economic Growth", 1965)

"What is special about 'general equilibrium theory' as opposed to economic theory in general? For me the importance of general equilibrium theory lies in its traditions which are deeper than any other part of economic theory. These traditions, which of course derive from actual economic history, explain why equilibrium theory has played such a central role and possesses such depth in content. Many of the procedures and  mathematical methods used in other parts of economics grew out of developments in general equilibrium theory. Also equilibrium theory plays an important role in communication within the economics profession." (Steven Smale, "Dynamics in General Equilibrium Theory", The American Economic Review Vol. 66 (2), 1976) 

"We know, in other words, the general conditions in which what we call, somewhat misleadingly, an equilibrium will establish itself: but we never know what the particular prices or wages are which would exist if the market were to bring about such an equilibrium." (Friedrich Hayek, "Unemployment and monetary policy: government as generator of the ‘business cycle’", 1979)

"Economic theory is devoted to the study of equilibrium positions. The concept of equilibrium is very useful. It allows us to focus on the final outcome rather than the process that leads up to it. But the concept is also very deceptive. It has the aura of something empirical: since the adjustment process is supposed to lead to an equilibrium, an equilibrium position seems somehow implicit in our observations. That is not true. Equilibrium itself has rarely been observed in real life - market prices have a notorious habit of fluctuating." (George Soros, "The Alchemy of Finance: Reading the Mind of the Market", 1987)

"The concept of a general equilibrium has no relevance to the real world (in other words, classical economics is an exercise in futility)." (George Soros, "The Alchemy of Finance: Reading the Mind of the Market", 1987)

"Financial markets are supposed to swing like a pendulum: They may fluctuate wildly in response to exogenous shocks, but eventually they are supposed to come to rest at an equilibrium point and that point is supposed to be the same irrespective of the interim fluctuations." (George Soros, "The Crisis of Global Capitalism", 1998)

"Stock market bubbles don't grow out of thin air. They have a solid basis in reality - but reality as distorted by a misconception. Under normal conditions misconceptions are self-correcting, and the markets tend toward some kind of equilibrium. Occasionally, a misconception is reinforced by a trend prevailing in reality, and that is when a boom-bust process gets under way. Eventually the gap between reality and its false interpretation becomes unsustainable, and the bubble bursts." (George Soros, [interview] 2004)

Complex Systems III

"Complexity must be grown from simple systems that already work." (Kevin Kelly, "Out of Control: The New Biology of Machines, Social Systems and the Economic World", 1995)

"Even though these complex systems differ in detail, the question of coherence under change is the central enigma for each." (John H Holland," Hidden Order: How Adaptation Builds Complexity", 1995)

"By irreducibly complex I mean a single system composed of several well-matched, interacting parts that contribute to the basic function, wherein the removal of any one of the parts causes the system to effectively cease functioning. An irreducibly complex system cannot be produced directly (that is, by continuously improving the initial function, which continues to work by the same mechanism) by slight, successive modification of a precursor, system, because any precursors to an irreducibly complex system that is missing a part is by definition nonfunctional." (Michael Behe, "Darwin’s Black Box", 1996)

"A dictionary definition of the word ‘complex’ is: ‘consisting of interconnected or interwoven parts’ […] Loosely speaking, the complexity of a system is the amount of information needed in order to describe it. The complexity depends on the level of detail required in the description. A more formal definition can be understood in a simple way. If we have a system that could have many possible states, but we would like to specify which state it is actually in, then the number of binary digits (bits) we need to specify this particular state is related to the number of states that are possible." (Yaneer Bar-Yamm, "Dynamics of Complexity", 1997)

"When the behavior of the system depends on the behavior of the parts, the complexity of the whole must involve a description of the parts, thus it is large. The smaller the parts that must be described to describe the behavior of the whole, the larger the complexity of the entire system. […] A complex system is a system formed out of many components whose behavior is emergent, that is, the behavior of the system cannot be simply inferred from the behavior of its components." (Yaneer Bar-Yamm, "Dynamics of Complexity", 1997)

"Complex systems operate under conditions far from equilibrium. Complex systems need a constant flow of energy to change, evolve and survive as complex entities. Equilibrium, symmetry and complete stability mean death. Just as the flow, of energy is necessary to fight entropy and maintain the complex structure of the system, society can only survive as a process. It is defined not by its origins or its goals, but by what it is doing." (Paul Cilliers,"Complexity and Postmodernism: Understanding Complex Systems", 1998)

"There is no over-arching theory of complexity that allows us to ignore the contingent aspects of complex systems. If something really is complex, it cannot by adequately described by means of a simple theory. Engaging with complexity entails engaging with specific complex systems. Despite this we can, at a very basic level, make general remarks concerning the conditions for complex behaviour and the dynamics of complex systems. Furthermore, I suggest that complex systems can be modelled." (Paul Cilliers," Complexity and Postmodernism", 1998)

"The self-similarity of fractal structures implies that there is some redundancy because of the repetition of details at all scales. Even though some of these structures may appear to teeter on the edge of randomness, they actually represent complex systems at the interface of order and disorder."  (Edward Beltrami, "What is Random?: Chaos and Order in Mathematics and Life", 1999)

On Feedback (1980-1989)

"Effect spreads its 'tentacles' not only forwards (as a new cause giving rise to a new effect) but also backwards, to the cause which gave rise to it, thus modifying, exhausting or intensifying its force. This interaction of cause and effect is known as the principle of feedback. It operates everywhere, particularly in all self-organising systems where perception, storing, processing and use of information take place, as for example, in the organism, in a cybernetic device, and in society. The stability, control and progress of a system are inconceivable without feedback." (Alexander Spirkin, "Dialectical Materialism", 1983)

"The autonomy of living systems is characterized by closed, recursive organization. [...] A system's highest order of recursion or feedback process defines, generates, and maintains the autonomy of a system. The range of deviation this feedback seeks to control concerns the organization of the whole system itself. If the system should move beyond the limits of its own range of organization it would cease to be a system. Thus, autonomy refers to the maintenance of a systems wholeness. In biology, it becomes a definition of what maintains the variable called living." (Bradford P Keeney, "Aesthetics of Change", 1983)

"Ultimately, uncontrolled escalation destroys a system. However, change in the direction of learning, adaptation, and evolution arises from the control of control, rather than unchecked change per se. In general, for the survival and co-evolution of any ecology of systems, feedback processes must be embodied by a recursive hierarchy of control circuits." (Bradford P Keeney, "Aesthetics of Change", 1983)

"What is sometimes called 'positive feedback' or 'amplified deviation' is therefore a partial arc or sequence of a more encompassing negative feedback process. The appearance of escalating runaways in systems is a consequence of the frame of reference an observer has punctuated. Enlarging one's frame of reference enables the 'runaway' to be seen as a variation subject to higher orders of control." (Bradford P Keeney, "Aesthetics of Change", 1983)

"Every system of whatever size must maintain its own structure and must deal with a dynamic environment, i.e., the system must strike a proper balance between stability and change. The cybernetic mechanisms for stability (i.e., homeostasis, negative feedback, autopoiesis, equifinality) and change (i.e., positive feedback, algedonodes, self-organization) are found in all viable systems." (Barry Clemson, "Cybernetics: A New Management Tool", 1984) 

"The term closed loop-learning process refers to the idea that one learns by determining what s desired and comparing what is actually taking place as measured at the process and feedback for comparison. The difference between what is desired and what is taking place provides an error indication which is used to develop a signal to the process being controlled." (Harold Chestnut, 1984) 

"Negative feedback only improves the precision of goal-seeking, but does not determine it. Feedback devices are only executive mechanisms that operate during the translation of a program." (Ernst Mayr, "Toward a New Philosophy of Biology: Observations of an Evolutionist", 1988)

On Dynamics: On Stability (-1974)

"The behavior of two individuals, consisting of effort which results in output, is considered to be determined by a satisfaction function which depends on remuneration (receiving part of the output) and on the effort expended. The total output of the two individuals is not additive, that is, together they produce in general more than separately. Each individual behaves in a way which he considers will maximize his satisfaction function. Conditions are deduced for a certain relative equilibrium and for the stability of this equilibrium, i.e., conditions under which it will not pay the individual to decrease his efforts. In the absence of such conditions ‘exploitation’ occurs which may or may not lead to total parasitism." (Anatol Rapoport, "Mathematical theory of motivation interactions of two individuals," The Bulletin of Mathematical Biophysics 9, 1947)

"[…] there are three different but interconnected conceptions to be considered in every structure, and in every structural element involved: equilibrium, resistance, and stability." (Eduardo Torroja, "Philosophy of Structure" , 1951) 

"As shorthand, when the phenomena are suitably simple, words such as equilibrium and stability are of great value and convenience. Nevertheless, it should be always borne in mind that they are mere shorthand, and that the phenomena will not always have the simplicity that these words presuppose." (W Ross Ashby, "An Introduction to Cybernetics", 1956)

"Stability is commonly thought of as desirable, for its presence enables the system to combine of flexibility and activity in performance with something of permanence. Behaviour that is goal-seeking is an example of behaviour that is stable around a state of equilibrium. Nevertheless, stability is not always good, for a system may persist in returning to some state that, for other reasons, is considered undesirable." (W Ross Ashby, "An Introduction to Cybernetics", 1956)

"The static stability of a system is defined by the initial tendency to return to equilibrium conditions following some disturbance from equilibrium. […] If the object has a tendency to continue in the direction of disturbance, negative static stability or static instability exists. […] If the object subject to disturbance has neither the tendency to return nor the tendency to continue in the displacement direction, neutral static stability exists." (Hugh H Hurt, "Aerodynamics for Naval Aviators", 1960)

"While static stability is concerned with the tendency of a displaced body to return to equilibrium, dynamic stability is concerned with the resulting motion with time. If an object is disturbed from equilibrium, the time history of the resulting motion indicates the dynamic stability of the system. In general, the system will demonstrate positive dynamic stability if the amplitude of the motion decreases with time." (Hugh H Hurt, "Aerodynamics for Naval Aviators", 1960)

"[...] in a state of dynamic equilibrium with their environments. If they do not maintain this equilibrium they die; if they do maintain it they show a degree of spontaneity, variability, and purposiveness of response unknown in the non-living world. This is what is meant by ‘adaptation to environment’ […] [Its] essential feature […] is stability - that is, the ability to withstand disturbances." (Kenneth Craik, 'Living organisms', “The Nature of Psychology”, 1966)

"Related is the idea of structural stability and certain variations. This kind of is a property of a dynamical system itself (not of a or orbit) and asserts that nearby dynamical systems have the same structure. The 'same structure' can be defined in several interesting ways, but the basic idea is that two dynamical systems have 'the same structure' if they have the same gross behavior, or the same qualitative behavior. For example, the original definition of 'same structure' of two dynamical systems was that there was an orbit preserving continuous transformation between them. This yields the definition of structural stability proper. It is a recent theorem that every compact manifold admits structurally stable systems, and almost all gradient dynamical systems are structurally stable. But while there exists a rich set of structurally stable systems, there are also important examples which are not stable, and have good but weaker stability properties." (Stephen Smale, "Personal perspectives on mathematics and mechanics", 1971)

"One of the central problems studied by mankind is the problem of the succession of form. Whatever is the ultimate nature of reality (assuming that this expression has meaning). it is indisputable that our universe is not chaos. We perceive beings, objects, things to which we give names. These beings or things are forms or structures endowed with a degree of stability: they take up some part of space and last for some period of time." (René Thom, "Structural Stability and Morphogenesis", 1972)

"There seems to be a time scale in all natural processes beyond which structural stability and calculability become incompatible." (René Thom, "Structural Stability and Morphogenesis", 1972)

"Mathematical statistics does not only study procedures for analysing experimental findings but also elaborates methods for taking decisions under conditions of uncertainty, the uncertainty being such as is characterized by statistical stability." (Yakov Khurgin, "Did You Say Mathematics?", 1974

René F Thom - Collected Quotes

"Everything considered, mathematicians should have the courage of their most profound convictions and thus affirm that mathematical forms indeed have an existence that is independent of the mind considering them. […] Yet, at any given moment, mathematicians have only an incomplete and fragmentary view of this world of ideas." (René F Thom, "Modern Mathematics: An Educational and Philosophical Error?", American Scientist Vol. 59, 1971) 

"Any mathematician endowed with a modicum of intellectual honesty will recognise then that in each of his proofs he is capable of giving a meaning to the symbols he uses." (René F Thom, "Modern mathematics, does it exist?", 1972)

"One of the central problems studied by mankind is the problem of the succession of form. Whatever is the ultimate nature of reality (assuming that this expression has meaning). it is indisputable that our universe is not chaos. We perceive beings, objects, things to which we give names. These beings or things are forms or structures endowed with a degree of stability: they take up some part of space and last for some period of time." (René F Thom, "Structural Stability and Morphogenesis", 1972)

"The fact that we have to consider more refined explanations - namely, those of science - to predict the change of phenomena shows that the  determinism of the change of forms is not rigorous, and that the same local  situation can give birth to apparently different outcomes under the influence of unknown or unobservable factors." (René F Thom, "Structural Stability and Morphogenesis", 1972)

"The real problem which confronts mathematics is not that of rigour, but the problem of the development of ‘meaning’, of the ‘existence’of mathematical objects.'' (René F Thom, "Modern mathematics, does it exist?", 1972)

"There seems to be a time scale in all natural processes beyond which structural stability and calculability become incompatible." (René F Thom, "Structural Stability and Morphogenesis", 1972)

"This distinction between regular and catastrophic points is obviously somewhat arbitrary because it depends on the fineness of the observation used. One might object, not without reason, that each point is catastrophic to sufficiently sensitive observational techniques. This is why the distinction is an idealization, to be made precise by a mathematical model, and to this end we summarize some ideas of qualitative dynamics." (René F Thom, "Structural Stability and Morphogenesis", 1972)

"The catastrophe model is at the same time much less and much more than a scientific theory; one should consider it as a language, a method, which permits classification and systematization of given empirical data [...] In fact, any phenomenon at all can be explained by a suitable model from catastrophe theory." (René F Thom, 1973)

"Catastrophe Theory is-quite likely-the first coherent attempt (since Aristotelian logic) to give a theory on analogy. When narrow-minded scientists object to Catastrophe Theory that it gives no more than analogies, or metaphors, they do not realise that they are stating the proper aim of Catastrophe Theory, which is to classify all possible types of analogous situations." (René F Thom," La Théorie des catastrophes: État présent et perspective", 1977)

"Algebra is rich in structure but weak in meaning." (René F Thom) 

"If we admit a priori that science is just acquisition of knowledge, that is, building an inventory of all observable phenomena in a given disciplinary domain - then, obviously, any science is empirical.” (René F Thom) 

"The spirit of geometry circulates almost everywhere in the immense body of mathematics, and it is a major pedagogical error to seek to eliminate it." (René F Thom) 

"Topology is precisely that mathematical discipline which allows a passage from the local to the global." (René F Thom)