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On principles and rules in complex adaptive systems: A financial system case study

Author

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  • George A. Polacek
  • David A. Gianetto
  • Khaldoun Khashanah
  • Dinesh Verma

Abstract

Systems engineers have always been concerned with the problems surrounding complex systems. An evolutionary class of complex systems called Complex Adaptive Systems (CAS) is even more relevant today as we struggle to understand and cope with the often undesirable emergence effects of some of these systems, evidenced by recurring financial and sociopolitical crises. A key characteristic of CAS is a large, diverse, and sometimes unknown set of interactions both internally and across the system boundary. For the purpose of managing this complexity we present in this paper the concept that a principles orientation as compared to rules orientation of a complex system is an important and useful characteristic in need of further study. The US financial system is used as a CAS exemplar in support of this inquiry. ©2012 Wiley Periodicals, Inc. Syst Eng 15

Suggested Citation

  • George A. Polacek & David A. Gianetto & Khaldoun Khashanah & Dinesh Verma, 2012. "On principles and rules in complex adaptive systems: A financial system case study," Systems Engineering, John Wiley & Sons, vol. 15(4), pages 433-447, December.
    • Handle: RePEc:wly:syseng:v:15:y:2012:i:4:p:433-447
    DOI: 10.1002/sys.21213
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    References listed on IDEAS

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    1. Alan Kirman, 2010. "The Economic Crisis is a Crisis for Economic Theory ," CESifo Economic Studies, CESifo Group, vol. 56(4), pages 498-535, December.
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    Cited by:

    1. Christos Ellinas & Neil Allan & Anders Johansson, 2016. "Exploring Structural Patterns Across Evolved and Designed Systems: A Network Perspective," Systems Engineering, John Wiley & Sons, vol. 19(3), pages 179-192, May.

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