The loop on figure 1 is typical of a situation of bounded rationality. An economic agent will sample data about the market situation and build a world representation by coding these data into information. The coding process is equivalent to learning or to interpolation of the data. Decisions will be taken by the agents according to their representation of the market and the actions taken by the agents contribute to shaping of the market. Market dynamics then implies the coupling of cognitive and economic dynamics.
Complex systems evolve in time towards attractors.
We here interprete attractor configurations as institutions . Another case is private information and agents who make their choice according to the experience they built on the past transactions that they have previously made. A network of preferential trade appears. Viewing institutions as attractors explains a number of interesting general features. The stability in time of institutions is a direct consequence of the fact that they are attractors of the dynamics.