This paper examines the methods of planning of complex systems. More precisely, it applies property rights analysis to the methodology of nomocracy, a leading branch of the theory of complexity in planning. To study the methodology of planning, the paper focuses on its objectives and methods, as well as the characteristics of nomocratic rules. It briefly examines the literature on the methods of planning of complex systems, the methods of the nomocratic approach, and the methods of regulation theory. It then develops a theoretical structure of the methodology of nomocratic planning by employing property rights analysis and finds that the purpose of nomocracy is the allocation of entitlements. Finally, to emphasise the importance of property rights, it discusses some specific findings of Holcombe's work "Planning and the Invisible Hand". Holcombe's work is a well-developed study of the relevance of the nomocratic approach to market functions; planning practices, such as zoning; and topical issues of contemporary urban development, such as sprawl and related new urbanism/smart growth principles. This paper focuses on Holcombe's particularly critical view of the latter. However, while the application of property rights analysis fully supports Holcombe's understanding of the positive connection between nomocratic planning and the market, it also leads to a more favourable view of zoning and new urbanist principles. The paper concludes that the main objective and defining characteristic of nomocratic rules is that they serve to allocate property rights over commonly owned resources.Keywords methodology of planning, nomocracy, planning and regulation, planning of complex systems, property rights
Literature on the methodology of planning of complex systemsThis section examines the literature on the methodology of planning complex systems, particularly the nomocratic approach. This review reveals that the theory of nomocracy has not yet clearly identified the characteristic features, objectives and methods of nomocratic rules that distinguish them from other rules governing human activities.
Methods of planning relevant to the management of complex systemsDefining complex systems is not easy, and even the best definitions may allow for different interpretations and require clarification.