Control, Information, and Technological Change

Information theory, cybernetics and the theory of finite automata are used to model learning-by-doing, bounded rationality, routine behavior, and the formation of teams. The non-neoclassical characterization of production developed in this book ignores the usual quantitative relationships between inputs and outputs and instead views production strictly as a problem of control and communication. The motivation for this unconventional characterization of production comes from Schumpeter's cri...