Distributed Self-regulation Induced by Negative Feedbacks in Ecological   and Economic Systems
  We consider an ecological system governed by Lotka-Volterra dynamics and an example of an economic system as a mesomarket with perfect competition. We propose a mechanism for cooperative self-regulation that enables the system under consideration to respond properly to changes in the environment. This mechanism is based on (1) active individual behavior of the system elements at each hierarchical level and (2) self-processing of information caused by the hierarchical organization. It is shown how the proposed mechanism suppresses nonlocal interaction of elements belonging to a particular level as mediated by higher levels. 
V.V.Gafiychuk, I.A.Lubashevsky, Robert E. Ulanowicz