One of my favorite book other than “ Game and Chaos Theory “ is this called “ Complex Adaptive Systems : An Introduction to Computational Models of Social Life , by John H. Miller and Scott E. Page “.
What is “ Complex Adaptive System “ and why is it so important to understand the stocks market ? other than “behavioral or psychological “ aspect of market.
We often look at the things or world as “linear “ and has a very clear “cause and effect “ relationship. The bulk of economics studies is based on equilibrium systems: for example, a balance between supply and demand, risk and reward, price and quantity, this view stems from the idea that economics is a science similar to Newtonian physics, with an identifiable link between cause and effect and implied predictability. When the equilibrium system is hit by an exogenous shock, it absorbs the shock and returns to an equilibrium state......