Complex Decision-Making in Economy and Finance. Pierre Massotte

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The evolution of an economic system – the problem of CRISIS 11.7. Role of complexity and diversity in Nature 11.8. Application: how should we proceed when faced with crises and financial crashes/crises? 11.9. Crisis as the end of an evolution 11.10. Collapse theory and modeling – a theory of the “end” 11.11. Design of financial products: the example of world interconnections 11.12. Conclusion 12 Physics and Social Networks: Domain Similarities 12.1. Introducing a similarity of domains 12.2. On the principle of emergence 12.3. Finance, economics and physics: the quantification of emergence 12.4. About Gödel theorems 12.5. Conclusion 13 Managing Behavioral Risks: Uncertainty and Catastrophes 13.1. Introduction 13.2. Implications for intellectual approaches 13.3. The uncertainties 14 On Managing Risk in the Energy Domain: Conventional Problems Encountered 14.1. From a new oil crisis (peak oil) and the resulting energy crisis 14.2. The future: limit of price increases? Implications of the shortage 14.3. Modeling the problem correctly 14.4. Crisis or heuristic tactics? Large-scale oil shock? 14.5. A few conclusive remarks 15 On Managing Risk in the Financial Domain 15.1. Taking about disasters – from risks to catastrophes in finance 15.2. An interesting approach: financial analysis of losses 15.3. When the drama occurs 15.4. How to conduct a risk consequence analysis process? 15.5. Conservatory measures: risk and diversification 15.6. An additional risk: the decline and inversion rate at the stock exchange 15.7. Concluding with additional risks of the shared economy 16 Why Current Tools Are Inadequate 16.1. On the shortcomings of current tools: risk and probability 16.2. A thematic illustration 16.3. What regularities? 16.4. Characteristics of rational expectations in economics 16.5. Risk characteristics in the industry 16.6. A philosophical summary: chance and necessity 16.7. The environment’s new challenge 17 How to Manage Crises? 17.1. The fundamental principles of crisis management 17.2. Early warning risk signals and the basics of risk management 17.3. Five fundamental elements that describe a company 17.4. About stakeholders 18 Managing Crises in Finance and Other Domains 18.1. Reorienting company aims 18.2. Interactions: towards a crisis model? 19 Technological, Monetary and Financial Crashes 19.1. Yet another view to complexity 19.2. The reference financial systems are continuously changing 19.3. Conclusive discussion

      5  Conclusion: Different Types of Crises C.1. The crises mesh C.2. Changing economic and industrial cultures

      6  List of Abbreviations

      7  References

      8  Index

      9  End User License Agreement

      List of Tables

      1 Chapter 5Table 5.1. Different interaction strategies between market entities

      2 Chapter 10Table 10.1. The higher and lower orders

      3 Chapter 16Table 16.1. Anomaly indicators

      List of Illustrations

      1 Chapter 1Figure 1.1. An industrial MRP system with its feedback loopsFigure 1.2. A flexible production systemFigure 1.3. A dynamic industrial system with nonlinear interactionsFigure 1.4. Positioning of paradigms in production management

      2 Chapter 2Figure 2.1. Two approaches to managing complex systems (from

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