686 B
686 B
Requisite Variety
Definition
The principle that effective regulation requires the controlling system to possess at least as much complexity and adaptability as the system being controlled, ensuring adequate responsiveness to changing conditions.
Source Chapter
Book IV, Chapter 5
Context
While not using the modern term, Smith's arguments about the need for flexible and responsive economic policies that can adapt to changing conditions reflect the principle of requisite variety in economic regulation.
Economic Domain
General Theory