SHIMIZU Kazuyuki    Department   Undergraduate School  , School of Business Administration    Position   Professor
Date	2014/09/03
Presentation Theme	Governing "invisible hand" by cybernetics approach: Understanding Adam Smith's legacy.
Conference	International Federation of Scholarly Associations of Management
Promoters	IFSAM2014 World Congress
Conference Type	International
Presentation Type	Speech (General)
Contribution Type	Individual
Details	This study adapts Norbert Wiener's idea of cybernetics to Smith's "invisible hand" to understand incentives for exchange. The rationality of a decision-making process varies from one individual to another. Therefore, the cybernetics approach can provide a means of organizing information within an individual's surroundings. Each individual contributes to creating the optimal market-condition. This (price) mechanism, creating by the "invisible hand", relies on self-interest and does not require external control. However, at this mechanism, the exchange could be made more efficient if the "invisible hand" were clarified through cybernetics approach. This approach seeks to organize chaos, and can be achieved in a more effective way than through the function of the "invisible hand".