Control by Real Objects, or sign Effects of the Real Domain

Abstract

Kornai Janos formulated a model of economic systems as a network of automata, each of which is an organization such as households and sections of enterprises.Each orgnization can be devided into two sud-automata:the real unit and the control unit. The real units are connected with each others by flows of economic goods and make a network called real domain.The control units, on the other hand, form a network called control domain connected by flows of information.After the introduction of Kornai's systems theory, I discuss a few characteristics which differenciate the automata theory from the general equilibrium theory.Asymmetry of transactions is partly explained by the fact that a network of automata can function as an automaton only when common decisions of variables are excluded.The importance of autonomous functions is emphasised in economic systems in comparison to the higher functions.Then, I discuss to which domain the money should belong.Kornai supposed implicitly that money flows are information exchanged in the control domain.I propose to relocate the money and its flows into the real domain. This makes it simpler to interprete them and allows to analyse how the monetary control works.Division between real and control domains is an usefull distinction but it is not categorical. Variables in the real domain can play an informational role which is sometimes more usefull and reliable than information flows in the control domain.In the range of higher functions, this kind of role exchage happens as the experience of Toyota productionsystem and that of Material Requirements Planning system show.