Using models, developed in one branch of science, to describe similar behaviors encountered in a different one, is the essence of a synergetic approach. A wide range of topics has been developed including Agent-based models, econophysics, socio-economic networks, information, bounded rationality and learning in economics, markets as complex adaptive systems - evolutionary economics, multi scale analysis and modeling, nonlinear dynamics and econometrics, physics of risk, statistical and probabilistic methods in economics and finance. This publication concentrates on process behavior of economic systems and building models that stem from Haken's, Prigogine's, Taylor's work as well as from nuclear physics models.
1 Introduction: Reasons for Writing this Book, a Decision Theory Approach 3
1.1 Introduction 3
1.2 Why the Structure of This Book - a Decision Theory Approach 13
2 Nonlinear Models for the Labour Market 23
2.1 Introduction 23
2.2 Nonlinear Models and Examples for the Labour Market 24
2.3 Conclusion 30
3 Second Order Effects in Population Migration 33
3.1 Nonlinear Migration Behaviour 33
3.2 Cases of Reverse Migration 35
3.3 A (Not So) Simple Model 35
3.4 Results 39
3.5 Conclusion 41
4 Cities: Reactors for Economic Transactions 45
4.1 Transaction Environment 45
4.2 Diffusion Equation 47
4.3 The Reflector (Albedo) 56
4.4 Decrease in Income 58
4.5 Dynamic Evolution Equation 60
4.6 Conclusion 62
Annex 4.1 62
A.4.1 The Coefficient K 62
5 Considerations on the Reform in the Power Sector (Avoiding Chaos in the Path to an Optimal Market Structure) 71
5.1 Introduction 71
5.2 From Power Sector to Power Market 73
5.3 Non-linear Effects in Market Penetration 81
5.4 Conclusion 86