Information function for reducing uncertainty in feedback: Economics choices

This study has proved the system control theory and economic analysis and concludes on the consistency between them. In order to achieve a stable system implementation and output for a socio-economic system, the feedback control is necessary. This result must be achieved through a negative feedback mechanism. However, feedback control must reduce uncertainty, without which information is impossible. Similarly, economic decisions also depend on information. As a result, this study did not ignore the discussion on the concept of information, uncertainty, risk and entropy. At the same time, supposing the study is done under a market-based economic system, according to the proof of microeconomics, the equilibrium production for achieving maximum profit has a requirement of insufficient production elasticity.  For simplicity, by means of a short-run equilibrium analysisi¼Œthis study established a general multiple input factors of model, for example, it introduced an imperfect competition market structure and carried out elastic analysis. Therefore, the study must consider the market demand changes and the impact of price variations.  The related elastic analysis produced the important information, which gives some conditions for market price convergence. In socio-economic systemi¼Œusing information and its mechanisms can make the entropy in the system reduce, that is useful for economic analysis, decision and the system design.   Key words: Socio-economic system, feedback, uncertainty, elasticity.