Positive Feedback Economies

The aim of this text is to study the economy as a complex system and to show that the presence of self-reinforcing mechanisms in very different economic problems gives rise to common regularities and common qualitative properties. Dynamic systems of the self-reinforcing types are considered; that is, systems with local positive feedbacks. Economic theory maintains that positive feedbacks can cause multiple equilibria and possible inefficiency. This book concentrates on the less familiar properties of lock-in, path dependence and symmetry-breaking.