The Economy As An Complex Evolving System Ii

The Economy As An Complex Evolving System Ii

by W. Brian Arthur, Steven N Durlauf
     
 

ISBN-10: 0201328232

ISBN-13: 9780201328233

Pub. Date: 01/01/1997

Publisher: Westview Press


A new view of the economy as an evolving, complex system has been pioneered at the Santa Fe Institute over the last ten years, This volume is a collection of articles that shape and define this view—a view of the economy as emerging from the interactions of individual agents whose behavior constantly evolves, whose strategies and actions are always…  See more details below

Overview


A new view of the economy as an evolving, complex system has been pioneered at the Santa Fe Institute over the last ten years, This volume is a collection of articles that shape and define this view—a view of the economy as emerging from the interactions of individual agents whose behavior constantly evolves, whose strategies and actions are always adapting.The traditional framework in economics portrays activity within an equilibrium steady state. The interacting agents in the economy are typically homogenous, solve well-defined problems using perfect rationality, and act within given legal and social structures. The complexity approach, by contrast, sees economic activity as continually changing—continually in process. The interacting agents are typically heterogeneous, they must cognitively interpret the problems they face, and together they create the structures—markets, legal and social institutions, price patters, expectations—to which they individually react. Such structures may never settle down. Agents may forever adapt and explore and evolve their behaviors within structures that continually emerge and change and disappear—structures these behaviors co-create. This complexity approach does not replace the equilibrium one—it complements it.The papers here collected originated at a recent conference at the Santa Fe Institute, which was called to follow up the well-known 1987 SFI conference organized by Philip Anderson, Kenneth Arrow, and David Pines. They survey the new study of complexity and the economy. They apply this approach to real economic problems and they show the extent to which the initial vision of the 1987 conference has come to fruition.

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Product Details

ISBN-13:
9780201328233
Publisher:
Westview Press
Publication date:
01/01/1997
Series:
Proceedings Series
Edition description:
REV
Pages:
600
Product dimensions:
6.00(w) x 9.00(h) x (d)

Table of Contents

Introduction1
Asset Pricing Under Endogenous Expectations in an Artificial Stock Market15
Natural Rationality45
Statistical Mechanics Approaches to Socioeconomic Behavior81
Is What Is Good for Each Best for All? Learning From Others in the Information Contagion Model105
Evolution of Trading Structures129
Foresight, Complexity, and Strategy169
The Emergence of Simple Ecologies of Skill199
Some Fundamental Puzzles in Economic History/Development223
How the Economy Organizes Itself in Space: A Survey of the New Economic Geography239
Time and Money263
Promises Promises285
Macroeconomics and Complexity: Inflation Theory321
Evolutionary Dynamics in Game-Theoretic Models337
Identification of Anonymous Endogenous Interactions369
Asset Price Behavior in Complex Environments385
Population Games425
Computational Political Economy461
The Economy as an Interactive System491
How Economists Can Get A Life533
Some Thoughts About Distribution in Economics565
Index567

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