Self-Organizing Market Structures, System Dynamics, and Urn Theory

摘要

This article argues that the tools of system dynamics and urn theory can be used to model self-organizing markets. A fundamental characteristic of self-organizing markets is that size of firms by rank order follows the Zipf distributions. While complex industrial structures of this kind are hard to describe with conventional theories, system dynamics and urn theory are equipped with adequate tools to deal with this kind of evolutionary phenomena.