31 December 2025

❄️Systems Thinking: On Competition (Quotes)

"The true nature of the universal principle of synergy pervading all nature and creating all the different kinds of structure that we observe to exist, must now be made clearer. Primarily and essentially it is a process of equilibration, i.e., the several forces are first brought into a state of partial equilibrium. It begins in collision, conflict, antagonism, and opposition, and then we have the milder phases of antithesis, competition, and interaction, passing next into a modus vivendi, or compromise, and ending in collaboration and cooperation. […] The entire drift is toward economy, conservatism, and the prevention of waste." (James Q Dealey & Lester F Ward, "A Text-book of Sociology", 1905)

"An internal model allows a system to look ahead to the future consequences of current actions, without actually committing itself to those actions. In particular, the system can avoid acts that would set it irretrievably down some road to future disaster" ('stepping off a cliff'). Less dramatically, but equally important, the model enables the agent to make current 'stage-setting' moves that set up later moves that are obviously advantageous. The very essence of a competitive advantage, whether it be in chess or economics, is the discovery and execution of stage-setting moves." (John H Holland, 1992)

"The systems' basic components are treated as sets of rules. The systems rely on three key mechanisms: parallelism, competition, and recombination. Parallelism permits the system to use individual rules as building blocks, activating sets of rules to describe and act upon the changing situations. Competition allows the system to marshal its rules as the situation demands, providing flexibility and transfer of experience. This is vital in realistic environments, where the agent receives a torrent of information, most of it irrelevant to current decisions. The procedures for adaptation - credit assignment and rule discovery - extract useful, repeatable events from this torrent, incorporating them as new building blocks. Recombination plays a key role in the discovery process, generating plausible new rules from parts of tested rules. It implements the heuristic that building blocks useful in the past will prove useful in new, similar contexts." (John H Holland, "Complex Adaptive Systems", Daedalus Vol. 121" (1), 1992) 

"The model of competitive equilibrium which has been discussed so far is set in a timeless environment. People and companies all operate in a world in which there is no future and hence no uncertainty." (Paul Ormerod, "The Death of Economics", 1994)

"Economics emphasizes competition, expansion, and domination; ecology emphasizes cooperation, conservation, and partnership." (Fritjof Capra, The Web of Life", 1996)

"What is sustained in a sustainable community is not economic growth, development, market share, or competitive advantage, but the entire web of life on which our long-term survival depends. In other words, a sustainable community is designed in such a way that its ways of life, businesses, economy, physical structures, and technologies do not interfere with nature’s inherent ability to sustain life." (Fritjof Capra, "Ecoliteracy: The Challenge for Education in the Next Century", 1999)

"Optimization by individual agents, often used to derive competitive equilibria, are unnecessary for an actual economy to approximately attain such equilibria. From the failure of humans to optimize in complex tasks, one need not conclude that the equilibria derived from the competitive model are descriptively irrelevant. We show that even in complex economic systems, such equilibria can be attained under a range of surprisingly weak assumptions about agent behavior." (Antoni Bosch-Domènech & Shyam Sunder, "Tracking the Invisible Hand", 2000)

"Periods of rapid change and high exponential growth do not, typically, last long. A new equilibrium with a new dominant technology and/or competitor is likely to be established before long. Periods of punctuation are therefore exciting and exhibit unusual uncertainty. The payoff from establishing a dominant position in this short time is therefore extraordinarily high. Dominance is more likely to come from skill in marketing and positioning than from superior technology itself." (Richar Koch, "The Power Laws", 2000)

"To remedy chaotic situations requires a chaotic approach, one that is non-linear, constantly morphing, and continually sharpening its competitive edge with recurring feedback loops that build upon past experiences and lessons learned. Improvement cannot be sustained without reflection. Chaos arises from myriad sources that stem from two origins: internal chaos rising within you, and external chaos being imposed upon you by the environment. The result of this push/pull effect is the disequilibrium [...]." (Jeff Boss, "Navigating Chaos: How to Find Certainty in Uncertain Situations", 2015)


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