Redundancy is one of the keys to digital cell phone transmissions, and packet transmissions for the internet, human speech, credit card numbers, music composition. The list goes on and on, but should include the market. In speech, typically people say the same thing over and over, to guaranty the message gets through. Digital cell phone technology uses some sort of redundant error correction to insure the correct message. Musical composition often has three verses, and repeats the theme to get the message through.

The market does the same. The mechanism is the result of trial and error, to some degree, but also of communication, error correction. A minimum of three is needed to provide some sort of error correction, and to insure transmission of the message. This is why we often see things in threes. It is good to know or expect repetition or redundancy as it gives an edge. For some reason the news and commentators seems to think rather of endless continuation as the normal mode.

Paolo Pezzutti adds:

Redundancy increases reliability of systems, usually in the case of a backup. You can find in many critical-performance systems and applications that some components or modules can be at least doubled. When you have a federated system, for example, you can choose to have a central "intelligent' core and a number of "non-intelligent" sub-systems, or you can have "intelligent" subsystems providing a higher degree of resilience to failures. This is typical of some combat systems on board ships for example. The point is that not only redundancy adds reliability, but it increases also the performance, because intelligence is distributed throughout the system of systems and decentralization is a more efficient and effective solution (there are less bottlenecks and so on).

Redundancy and reliability, however, have a cost. When designing a system you have to weigh costs and benefits to find a balance that meets the user requirements. Markets find dynamically a balance between costs and benefits through the price discovery process. Also in this case, network-enabled players that apply a decentralized approach have an advantage in situational awareness, speed of evaluating the situation and making decisions, and speed of execution have an advantage over bureaucratic, centralized and slow players.

Phil McDonnell comments:

Redundancy can be very good but there are some occasions when it accomplishes less than one might think. For example, most data centers have more than one server. But if they are running on the same electrical power system they are still vulnerable to the loss of that common critical resource.

Another example might be when the sources of failure are not independent. One example using two servers might be if both are plugged into the same wall plug. They are susceptible to common power surges and lightning strikes transmitted over the power lines. Even several computers connected via long network cables can be simultaneously damaged by the EM pulse from a nearby lightning bolt.





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2 Comments so far

  1. douglas roberts dimick on April 7, 2009 7:57 am

    I Got Your Number

    Some birthday’s ago, a friend said, “Here is your present.”

    Inside the envelope was the engraved number 33.

    That is my birthnumber based on biblical numerology. At the time, I was the primary care provider for my parents as well as years into R&D of my Theory of Quantitative Relativity for program trading and portfolio management system design.

    The connection, that my friend kindly noted, was that I shared the same (master) birthnumber with Christ and Einstein. Recently, I ask her how she arrived at 33 for me.

    See http://www.carm.org/christianity/bible/what-biblical-numerology .

    I include the excerpt relative to Jim’s redundant… redundant article… article…

    “3 THE NUMBER OF DIVINE PERFECTION. The Trinity consists of Father, Son, and Holy Spirit. There are three qualities of the universe: Time, Space, and Matter. To exist (except for God), all three are required. Each quality consists of three elements. Therefore, we live in a trinity of trinities.

    The three qualities of universe are each three:

    Time is one yet three Space is one yet three Matter is one yet three




    We live in a Trinity of Trinities: Romans 1:20 says, ‘For since the creation of the world His invisible attributes, His eternal power and divine nature have been clearly seen, being understood through what has been made…’

    If you are a trichotomist then man is made of three parts:
    Body Soul Spirit

    Human abilities are three
    Thought Word Deed

    The divine attributes are three fold:
    God is:
    Omnipotent Love

    Spirit Holy

    Three bear witness (1 John 5:8):
    Spirit Water Blood

    Christ is Three Shepherds
    The Good Shepherd (John 10:14-15) - speaking of His death
    The Great Shepherd (Heb. 13:20) - speaking of His resurrection
    The Chief Shepherd (1 Pet. 5:4) - speaking of His glory

    The Three appearances of Christ:
    Has appeared (Heb. 9:26) to put away sin
    Is appearing (Heb. 9:24) in the presence of God
    Will appear (Heb. 9:28) to those who await Him

    The Father spoke from Heaven three times:
    - Matt. 3:17, “This is My beloved Son, in whom I am well pleased.”
    - Matt. 17:5, “This is My beloved Son, with whom I am well-pleased; listen to Him.”
    - John 12:28, “I have both glorified it [the Father’s name], and will glorify it again.”

    Both the Tabernacle and the Temple consisted of three parts:
    The Court The Holy place The Sanctuary

    Regarding the Tabernacle:
    The Holy of Holies was a cube (10 cubits x 10 cubits x 10 cubits)

    Regarding the Temple:
    The Holy of Holies was a cube (20 cubits x 20 cubits x 20 cubits).”

    Although I am “relatively” new to the dspec group, we seem to spend a fair amount of energy on this site seeking out and identifying patterns. I am neither of the ilk nor the intelligence to possess the access or wisdom for effecting such determinations as we so examine.

    As with my work, what we characterize as being patterns does appear relative in accordance with rules-based constructs. Be those systems quantitative, financial, technological, sociological, psychological, even physiological or religious, we have certainly provided (just on this site) ample evidence that people – some very intelligent, well read and highly educated people – believe there to be patterning and not just in the markets, as Jim’s article… article denotes.

    If this impression is true, then our focus may shift to how the “mechanism is the result of trial and error…” (see Jim’s article… article… see).


  2. diego joachin on April 7, 2009 11:33 am

    You were redundant for getting your idea clear for us. And I am being redundant at writing about it.


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