Is there any alternative, any middle path between the institutional stagnation of the Peter Principle and the draconian severity of the “up or out” system? The AIMD algorithm can offer just such an approach, since it is explicitly designed to handle the demands of a volatile environment. A computer network must manage its own maximum transmission capacity, plus the transmission rates of its clients, all of which may be fluctuating unpredictably. Likewise, in a business setting, a company has a limited pool of funds to pay for its operations, and each worker or vendor has a limited capacity for
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