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Evolving Information Processing Organizations

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  • John H. Miller

Abstract

The organization of information processing resources is a central question in economic, organizational, and computational theory. Recent work by Radner (1992) and others has developed a simple theoretical framework and some useful formal mathematical results about the behavior of such systems. Here, we follow a complementary computational approach that allows us to pursue questions concerning the impact of coordination and various exogenous conditions facing the organization. We find that organizations demonstrate "order for free," that is, given a simple structural framework and a set of standard operating procedures, even randomly generated organizations imply well-defined patterns of behavior. Using a genetic algorithm, we also show that simple evolutionary processes allow organizations to "learn" better structures.

Suggested Citation

  • John H. Miller, 1995. "Evolving Information Processing Organizations," Working Papers 95-06-053, Santa Fe Institute.
    • Handle: RePEc:wop:safiwp:95-06-053
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    References listed on IDEAS

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    1. Sah, Raaj Kumar & Stiglitz, Joseph E, 1986. "The Architecture of Economic Systems: Hierarchies and Polyarchies," American Economic Review, American Economic Association, vol. 76(4), pages 716-727, September.
    2. Herbert A. Simon, 1996. "The Sciences of the Artificial, 3rd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691914, December.
    3. Stanley Reiter, 1995. "Coordination and the Structure of Firms," Discussion Papers 1121, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    4. Holland, John H & Miller, John H, 1991. "Artificial Adaptive Agents in Economic Theory," American Economic Review, American Economic Association, vol. 81(2), pages 365-371, May.
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    Cited by:

    1. Tomas B. Klos, 1999. "Decentralized Interaction and Co-Adaptation in the Repeated Prisoner&2018;s Dilemma," Computational and Mathematical Organization Theory, Springer, vol. 5(2), pages 147-165, July.

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