Dig deeper with our selection of articles covering complexity economics topics, from cellular automaton to fitness landscapes
Complexity economics is an alternative paradigm within economic science based upon complexity theory and nonlinear models. Within this theoretical framework the economy is modeled as an open system composed of heterogeneous agents with bounded rationality, which gives rise to networks of interactions that we call institutions, and macro level non-equilibrium state to the economy that is in constant change driven by internal dynamics.
Evolutionary economics is an alternative paradigm to economic development that is focused on the internal dynamics through which the macroeconomy generates novel phenomena and changes over time in an evolutionary process, without the guidance of some centralized regulatory mechanism.
Self-organization is the emergence of a globally coherent pattern of organization out of the local interactions between initially independent components. It is in many ways very much counter-intuitive to our traditional beliefs about order having to be imposed from some external top-down design.
Behavioral economics is an approach to microeconomics that uses experiments to determine how agents make choices within an economic context, it studies the effects of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions and the consequences of this to broader economic outcomes.
The concept of Path Dependence is used to capture the way in which small, historical contingent events can set off self-reinforcing mechanisms and processes that “lock-in” particular pathways of development.