Technology as an observing system : a 2nd order cybernetics approach

The role of technology in modern society is becoming fundamental to society itself as the boundary between technological utilization and technological interference narrows. Technology penetrates the core of an ever-increasing number of application domains. It exerts considerable influence over institutions, often in subtle ways that cannot be fully understood, and the effects of which, cannot be easily demarcated. Also, the ever-expanding ecosystem of Information and Communication Technologies (ICTs) results in an emergent complexity with unpredictable consequences. Over the past decades this has created a tension that has led to a heated debate concerning the relationship between the technical and the social. Some theorists subsume the technical into the social, others proclaim its domination, others its autonomy, while yet others suggest that it is a derivative of the social. Starting with Luhmann’s remark that technology determines what we observe and what we do not observe, this paper takes the approach that infers there are multiple benefits by looking into how Systems Theory can provide a coherent theoretical platform upon which these interactions can be further explored. It provides a theoretical treatise that examines the conditions through which the systemic nature of technology can be inspected. Also, the paper raises a series of questions that probe the nature of technological interference in other ‘function-systems’ of society (such as the economy, science, politics, etc). To achieve this goal, a 2nd order cybernetics approach is employed (mostly influenced by the works of Niklas Luhmann), in order to both investigate and delineate the impact of technology as system. Toward that end, a variety of influences of Information Systems (IS) are used as examples, opening the door to a complexity that emerges out of the interaction of technology with its socio-economic and political context. The paper describes technology as an observing system within the context of 2nd order cybernetics, and looks into what could be the different possibilities for a binary code for that system. Finally, the paper presents a framework that synthesizes relevant systems theoretical concepts in the context of the systemic character of technology

Impersonal efficiency and the dangers of a fully automated securities exchange

This report identifies impersonal efficiency as a driver of market automation during the past four decades, and speculates about the future problems it might pose. The ideology of impersonal efficiency is rooted in a mistrust of financial intermediaries such as floor brokers and specialists. Impersonal efficiency has guided the development of market automation towards transparency and impersonality, at the expense of human trading floors. The result has been an erosion of the informal norms and human judgment that characterize less anonymous markets. We call impersonal efficiency an ideology because we do not think that impersonal markets are always superior to markets built on social ties. This report traces the historical origins of this ideology, considers the problems it has already created in the recent Flash Crash of 2010, and asks what potential risks it might pose in the future

A multi-agent platform for auction-based allocation of loads in transportation logistics

This paper describes an agent-based platform for the allocation of loads in distributed transportation logistics, developed as a collaboration between CWI, Dutch National Center for Mathematics and Computer Science, Amsterdam and Vos Logistics Organizing, Nijmegen, The Netherlands. The platform follows a real business scenario proposed by Vos, and it involves a set of agents bidding for transportation loads to be distributed from a central depot in the Netherlands to different locations across Germany. The platform supports both human agents (i.e. transportation planners), who can bid through specialized planning and bidding interfaces, as well as automated, software agents. We exemplify how the proposed platform can be used to test both the bidding behaviour of human logistics planners, as well as the performance of automated auction bidding strategies, developed for such settings. The paper first introduces the business problem setting and then describes the architecture and main characteristics of our auction platform. We conclude with a preliminary discussion of our experience from a human bidding experiment, involving Vos planners competing for orders both against each other and against some (simple) automated strategies

Introduction to the foreign exchange market

Before I’ll describe forex market I’d like to say why I have choose this subject for this article. First of all I really think that still exist people which don’t know about this activity and I strongly believe that in our days it’s a must, especially for those people how want to double or triple their profits from their own business. This article was created from a collection of structured data and I wish that through this article to familiarize yourself, more with the currency market.forex market; forex currency trading; analysis; psychology

Decision Markets for Policy Advice

The main cause of bad policy decisions is arguably a lack of information. Decisionmakers often do not make use of relevant information about the consequences of the policies they choose. The problem, however, is not simply that public officials do not exploit readily available information. It is also that they do not take full advantage of creative mechanisms that could expand the supply of policy-relevant information. Among the most innovative and potentially useful information-generating mechanisms are speculative markets. Speculative markets produce public information about the perceived likelihood of future events as a natural byproduct of voluntary exchange. Speculative markets do a remarkable job of aggregating information; in every head-to-head field comparison made so far, their forecasts have been at least as accurate as those of competing institutions, such as official government estimates. Many organizations are now trying to take advantage of this effect, experimenting with the creation of "prediction markets" or "information markets," to forecast future events such as product sales and project completion dates. This chapter examines the uses and limitations of decision markets. Decision markets are information markets designed to inform a particular policy decision, by directly estimating relevant consequences of that decision. After reviewing the weaknesses of existing institutions, the mechanics of decision markets, and a concrete example, this chapter reviews the requirements, advantages, and disadvantages of decision markets. The chapter also takes a close look at a particular application of this tool: the controversial yet illuminating attempt to establish a "Policy Analysis Market" to forecast the consequences of major policy U.S. choices in the Middle East.

Centralised order books versus hybrid order books: a paired comparison of trading costs on NSC (Euronext Paris) and SETS (London Stock Exchange).

This article compares the cost of trading large capitalisation equities on the hybrid order-driven segment of the London Stock Exchange and the centralised electronic order book of Euronext. Using samples of stocks matched according to economic sector, free float capitalisation, and trading volume, our study shows that transaction costs are lower on the centralised order book than on the hybrid order book. The presence of dealers outside the electronic order book favours the frequency of large trades, but is associated with higher execution costs for all other trades and higher adverse selection and inventory costs inside the order book.Centralised markets; Fragmentation; Hybrid market; Order Books; Spread components; Transaction cost;

Alternative Trading Systems and Liquidity.

A diversity of so-called Alternative Trading Systems (ATS) has challenged the existing traditional exchanges. This paper studies the impact of these ATS on the liquidity on the traditional financial markets using a market microstructure approach. In the United States ATS have been particularly successful in attracting trade in the Nasdaq dealer market, whereas they are less successful in competition with the NYSE. The theoretical reasoning behind this conjecture is that the agency nature of trading at the ATS allows investors to trade directly with each other without the intervention of a dealer. We argue that since continental European exchanges are typically organized as auction markets implying an agency nature of trading, the liquidity externality will prevent the auction-type ATS from breaking through and acquiring a significant market share in Europe. Only Crossing Networks may turn out to be more successful in realizing trades in Europe as they rely on the efficiency of price discovery on their primary market.

Centralised order books versus hybrid order books: a paired comparison of trading costs on NSC (Euronext Paris) and SETS (London Stock Exchange).

This article compares the cost of trading large capitalisation equities on the hybrid order-driven segment of the London Stock Exchange and the centralised electronic order book of Euronext. Using samples of stocks matched according to economic sector, free float capitalisation, and trading volume, our study shows that transaction costs are lower on the centralised order book than on the hybrid order book. The presence of dealers outside the electronic order book favours the frequency of large trades, but is associated with higher execution costs for all other trades and higher adverse selection and inventory costs inside the order book.Centralised market; Hybrid market; Order book; Transaction costs; Microstructure;