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Emergence of Organization and Markets Lloyd Demetrius June 2014 Claim The Origin and Evolution of Organizational Structures Can be analytically explained in terms of a theory of autocatalytic networks. Classes of Networks (1) (2) (3) Social Networks: cooperation between individuals in a community Economic Networks: transformation and production of economic commodities Linguistic Networks: production and generation of symbols 2 Autocatalytic Networks Chemical Reaction Networks A + C D D + B E E 2C Product C catalyses ist own synthesis from precursors A and B Biochemical Examples 1) Glycolysis: 2) Oxidative Phosphorylation 2 ATP 36 ATP 3 4 5 Problem To what extent is the conceptual framework of autocatalytic networks an appropriate model for the analytic study of the origin and evolution of socio-economic networks? 6 Origin and Evolution in Three Classes of Networks (1) Metabolic Networks: Energy production (2) Social Networks: Evolution of cooperation (3) Demographic Networks: Evolution of life history 7 Metabolic Networks Origin and Evolution of Energy Production in Cells Glycolytic Networks Oxidative Phosphorylation Cancer cells: Predominantly Glycolysis Normal cells: Predominantly Ocidative Phosphorylation Problem The Evolutionary Basis for Glycolysis and Ocidative Phosphorylation 8 Social Networks Origin and Evolution of Cooperation 1 2 Random Interaction 3 Origin 1 2 Structured Interaction 3 Evolution 1 1 2 2 3 3 Stratified Network Egalitarian Network 9 Non-Autocatalytic Networks Aggregates of Interacting Molecules Solid Liquid Gas Problem Explain the stability of these states 10 Thermodynamic Entropy Measure of Complexity in Material Aggregates S k log W W = number of ways that the molecules of a system can be arranged to achieve the same total energy Solid: low entropy Gas: high entropy Second Law of Thermodynamics: Thermodynamic entropy increases 11 Demographic Networks Origin and Evolution of Iteroparity 1 2 3 d md md m3 m2 1 b1 2 b2 3 b3 Annual Plants bd-1 d 1 b1 2 b2 3 b3 bd-1 d Perennial Plants Problem: The evolutionary rationale for the diversity in life history 12 Organismic Evolution (1) (2) (3) Variation: individuals within a species vary in terms of their physiology and behavior Heredity: there exists a positive correlation between the behavioral and physiological traits of parents and their offspring Selection: individuals differ in their capacity to appropriate resources from the external environment and to convert their resources into offspring 13 Prerequisites for an Analytical Model of Network Evolution (1) (2) (3) (4) A mathematical description of network complexity A formal description of the network-environment interaction An analytic description of natural selection A description of the rules of inheritance 14 Demographic Networks Network Complexity S k log W Evolutionary Entropy W = number of distinct pathways of energy flow in the network md md m3 m2 1 b1 2 b2 3 b3 Annual Plants W=1, S=0 bd-1 d 1 b1 2 b2 3 b3 bd-1 d Perennial Plants W>1, S>0 Network-Environment Resource abundance, resource composition Laws of Inheritance Mendelian 15 Evolution of Demographic Networks Evolutionary Changes in Network Complexity Variation: Changes in the topology and interaction intensity of the network – changes in life history Selection: Competition between variant and ancestral network for the resources X = ancestral type X* = variant type 16 Principles of Demographic Evolution The outcome of selection is predicted by evolutionary entropy and is contingent on the external resource constraints: (I) Resources constant in abundance and diverse in composition Evolutionary entropy increases (selection for iteroparity) (II) Resources variable in abundance, singular in composition Evolutionary entropy decreases (selection for semelparity) 17 From Demographic Networks to Social Networks Properties Demographic Networks Social Networks Unit Life Cycle Cooperative and Selfish Transactions Target of Selection Phenotypic Traits Behavioral Traits Laws of Inheritance Mendelian Cultural Environmental Constraints Energy: Foodstuffs Energy: Foodstuffs, Information Measure of Fitness Degree of Iteroparity Degree of Network Complexity Cooperation 18 Evolutionary Entropy Measure of Network Complexity S k log W W = number of distinct pathways of energy flow within a network 1 2 3 Few pathways = low entropy 1 2 3 Several distinct pathways = high entropy Network Low Entropy High Entropy Demographic Annual Plants Perennial Plant Metabolic Glycolysis Oxidative Phosphorylation Social Selfishness Cooperative Political Stratified Egalitarian 19 Applications of the Entropic Principles of Network Evolution Resource constraints Metabolic networks constant abundance diverse composition variable abundance singular composition oxidative cooperation economic phosphorylation equality glycolysis Social networks selfishness Economic networks economic inequality 20