1. DIGITAL ECOSYSTEMS, COLLECTIVE INTELLIGENCE, ONTOLOGY AND THE SECOND LAW OF THERMODYNAMICS Paola Di Maio, MFU . AC . TH, Chiang Rai, Thailand e - mail : paola . dimaio at gmail dot com
17. http :// mikeg . typepad . com / perceptions / 2007/05 / index . html
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29. Authors: M. Dobija, F. L. Lambert Management control systems act as tools to modulate risk and generate periodic income to restore capital concentration. Interacting systems with the unit from which capital is dispersing can act to restore capital Coupling of systems , as in biochemistry: a spontaneous change in a system supplies new energy to restore the system from which energy is dispersing. Additional actions to prevent undesirable change Risk premium given by efficient market Checks and balances. Honesty, integrity, loyalty to the controlling organisation, adherence to strict accounting practices Activation energy In chemistry, intrinsic barriers to chemical reaction. (External barriers to change can be by human artifice, i.e. painting iron to prevent oxygen from contact with it; preventing rust.). Prevention of change Proportional value decrease (risk, costs of risk) Value decrease divided by the total original value Entropy Amount of energy dispersed (reversibly) divided by the temperature Measure of spontaneous change Capital spontaneously disperses Human nature Disloyalty, dishonesty, greed, corruption, error. Organisation nature Complexity, lack of internal and ā¦.external controls. Society nature Lack of integrity, honesty, ā¦..nepotism, unfairness. Change in societal valuation of goods, ā¦..services, resources. Energy spontaneously flows from being localised to becoming dispersed and spread out , if it is not hindered from doing so. Description of source of instability Law of Capital Dispersion Concentrated value tends to disperse and thus decrease. Both physical and abstract market factors can alter values of resources and goods. The Second Law of Thermodynamics Fundamental generality about source of instability Capital is economic energy . Value is energy concentrated in resources, and goods. Labour is transformation of human capital to products (production functions), and services. Localized or concentrated Energy (Much energy in small volume) Unstable state (More generally in nature, a metastable (quasi-stable), state, one that can change to be unstable) if protective barriers, such as activation energy barriers are removed. Economics Physics/ Chemistry