Source Finder and the Entrance to Hidden Economy
Source Finder and the Entrance to Hidden Economy

Summary/Abstract: We have investigated whether a society or a social or economic system can learn and adapt to the environment as a whole. Our investigation was based on the suggestion that people can learn and adapt to their environment. For that purpose, we have created two simple models which allowed us to see that cog-nitive processes originate through the evolution where, on one hand, less capab-le individuals are taken out and, on the other hand, capable individuals survive. We have experimented with and tested a simple economy based on the Cobb-Douglass production function. Our goal was to create a simple and understand-able model of a complex system, not a sophisticated replication of the world. As we wanted to avoid the falsification of the experiment, we used as little of our preliminary knowledge as possible. Our aim was to achieve explicitly created evolution leading from the simple to the complex using minimum assumptions. Our experiment confirmed that the evolution was a spontaneous process that was changing the environment independently of one s mind and that the process of cognition can evolve in a such simple model.

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