Overconnectivity--How Internet Enhanced Positive Feedback Drives Institutional Change
When interconnections are increased and strengthened they augment the amount of positive feedback in economic, financial, and social systems—think 2008 Financial Crisis, the Stock Market Flash Crash, and Tunisia. Our institutions are not designed to cope with these new levels of positive feedback. As a result they become more accident prone, volatile, and subject to contagions. The question is, "How can we design more robust institutions in the future?"
May 13, 2011