W. Brian Arthur posits that our economy isn’t a machine but is more an organic and constantly evolving system. He’s coined the term complexity economics. From the article, “Complexity economics asks how individual behaviors in a situation might react to the pattern they together create, and how that pattern would alter itself as a result, causing the agents to react anew.”
Bear with me here but I think the housing market is a good example of complexity economics. A pattern arises from the collective action of sellers, buyers and renters. However, as the pattern emerges, the same individual actors will then react to the emerging pattern and, in doing so, alter the pattern.
For example, an active market with a shrinking inventory prompts renters to purchase, sellers to list their homes. Buyers are affected, too, as prices increase. The end result is new pattern, born of individual actions.
If you’d like to read more about this idea, here’s the Wiki link! I’m going to be doing a series on this topic, too. More to follow!