An Introduction

In his path-breaking book, Beyond Reductionism (1969), the famed novelist and polymath Arthur Koestler remarked that "true innovation occurs when things are put together for the first time that had been separate." He was talking about synergy, of course, a phenomenon that is still greatly underrated and vastly more important even than Koestler imagined. I call it "nature's magic."

Synergy is in fact one of the great governing principles of the natural world; it ranks right up there with such heavyweight concepts as gravity, energy, information and entropy as one of the keys to understanding how the world works. It has been a wellspring of creativity in the evolution of the universe; it has greatly influenced the overall trajectory of life on Earth; it played a decisive role in the emergence of humankind; it is vital to the workings of every modern society; and it is no exaggeration to say that our ultimate fate depends on it. Indeed, every day, in a thousand different ways, our lives are shaped, and re-shaped, by synergy.

All of these grandiose-sounding claims are discussed in detail, with many hundreds of examples, in three of my books: The Synergism Hypothesis (McGraw-Hill, 1983), Nature's Magic (Cambridge University Press, 2003), and Holistic Darwinism (University of Chicago Press, 2005), as well as in many of my articles for professional journals. Some of these publications are available at my website: http://www.complexsystems.org/

The purpose of this blog is to provide a continuing update on synergy and an opportunity for some dialogue on this important and still underappreciated phenomenon, along with commentaries on various topics - political, economic, and social -- from a synergy-monger's perspective. The tag-lines for each entry, with a "thought for the day," are the unregulated firecrackers that go off in my mind from time to time.

Peter Corning pacorning@complexsystems.org

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Tuesday, December 4, 2007

“Corporate Goods”

It is curious that both in economic theory and in classical neo-Darwinian evolutionary theory (both of which utilize game theory models), there has been little attention and even less theoretical work done on what I refer to as “corporate goods.” In the corporate goods model (which can include any number of players), the participants may contribute in many different ways to a joint product (say the capture of a large game animal or the manufacture and sale of an automobile). I like to call it a “combination of labor.” However, unlike “collective goods,” or “public goods” that are indivisible and must be equally shared (even possibly with non-participants and cheaters), corporate goods can be divided in accordance with various principles, or “rules” or “contracts”. The division of the spoils is thus not preordained, as is the case with the payoffs in most game theory models. In other words, the payoff matrix can be manipulated at will. Indeed, the question of how the goods are divided up may be crucially important in determining if the “game” will be played at all. If this sounds familiar, even commonplace, it is because corporate goods “games” are, in fact, ubiquitous in human societies, and are fairly common in nature as well. It is the predominant form of economic organization in a complex society.

Thought for the day: Back when America had a predominately middle-class society and one-income families were the rule (hard to believe today), the disparities in wealth were not so great. Nowadays, as a friend put it (with only a bit of hyperbole), either you have three houses or three jobs. There’s nothing in between.

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