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...s of coordination and the prospects for the emergence of an effective complex system are much greater if it has a nearly decomposable structure than if the interconnections are less departmentalized (=-=Simon, 1996-=-, chapters 7 and 8). Let us see why. Suppose that we have a system of two components, and that the efficiency of the whole is some function of the efficiencies of the components and their interactions...

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...stern economies are not “market economies” – they are “organization and market economies” and could not do what they are currently doing without both components, in particular the organizational one (=-=Simon, 1991-=-). Given the important role of markets and organizations in economies, a high priority needs to be given, in research on complex systems, to deepening our understanding of the real natures of these ki...

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...king powers. The near decomposability of organizational structures is a means of securing the benefits of coordination while holding down its costs by an appropriate division of labor among subunits (=-=Simon, 2000-=-). Moreover, complex systems, such as organizations, must be created so as to meet the needs of coordination and the prospects for the emergence of an effective complex system are much greater if it h...

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... others and take over the ecosystem. Hence, one reason we see in the world only complex systems that are nearly decomposable is because such systems are the ones that survive the fitness competition (=-=Frenken, Marengo, and Valente, 1999-=-). There has been a classical debate, since mid-century, in economics, initiated by Alchian (1950) and Friedman (1953) about whether competition will guaranty the survival of the fittest. In terms of ...