1. Introduction -- 2. The structure of interaction -- 3. Fish markets : an example of the emergence of aggregate coordination -- 4. Financial markets: bubbles, herds and crashes -- 5. Public goods : a coordination problem -- 6. Segregation : Schelling's model -- 7. Conclusion.

This book deals with the economy as a complex interactive system. The emphasis is on the direct interaction between agents rather than on the indirect and autonomous interaction through the market mechanism. Contributions from economists and physicists emphasise the consequences for aggregate...