The driving service Uber is getting ready for New Year’s Eve, and using it’s knowledge of economics and prices to not only increase sales, but provide a better service to it’s customers.
You always hear people complaining about a the fact that a Free-Market has boom and bust cycles, and how that is a bad thing. The reality is that you really do want the market to boom and bust, whether you know it or not.
If you take a purely determinate function and iterate it over time difficult-to-predict behavior can emerge. If you only use the same function, then the outcome is easily determined and therefore not complex. But if you use more than one determinate function or a set of rules with simple determinate functions then difficult-to-predict behavior may emerge.