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Chaos and Economics - exponentially increasing and diminishing returns Increasing Returns and High-Tech - chain reaction of growth and decline … dot.bomb Weak signal of change - small things might matter Turbulent environments Destructive innovations
This is just what Goldstar Co. created back in 1993. It was one of the world's first consumer products to exploit "chaos theory". This washing machine is supposed to produce cleaner and less tangled clothes. The key to the chaotic motion is a small pulsator (which stirs the water) that rises and falls randomly as the main pulsator rotates. When released to the world market, it was expected to push Goldstar's share of the annual 1.5-million-unit washing machine market to 40% in 1993, compared to 39% for Samsung and 21% for Daewoo (Goldstar's major competitors). However, marketing is fierce in South Korea and Daewoo argues that Goldstar "was not the first" to commercialize chaos theory. Daewoo also built a "bubble machine" in 1990 which also used chaos theory that was the result of "fuzzy logic circuits." Fuzzy circuits make choices between zero and one, and between true and false. These factors control the amount of bubbles, the turbulence of the machine, and even the wobble of the machine. It is clear that chaos theory has not gone unnoticed in today's consumer world market.
Dr. Bart Kosko, author of Fuzzy Thinking says most science math models are linear models, though no one has found a truly linear process in nature. Nonlinear math models are more accurate, & neural & fuzzy systems are tools that let us model nonlinear systems without having to guess at their exact mathematical form. Examples of applications are given: auto & air traffic control, computers, etc.