Can Complexity Economics present an alternative to standard economic theory 2019-01-17T11:21:36+00:00

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  • Joss ColchesterJoss Colchester
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    Complexity economics is the application of complexity science to the problems of economics. In contrast to a more traditional economic paradigm complexity economics interprets the economy as an open system composed of heterogeneous agents with bounded rationality making choices within a particular context that influence their decisions. Agents interact in many different ways through both positive, negative and zero-sum games which give rise to networks of connections and interdependencies that form institutions. Agents within the complex economy are embedded within many overlapping networks, social, cultural, technological, finical etc. How an organization or individual succeeds or fails within this economy is primarily a product of these different many interacting variables across different networks and the makeup of those networks. The overall result being a macro level non-equilibrium to the economy that is in constant change driven by internal dynamics and an evolutionary process of change.

    Do you think that complexity theory could one day present a coherent alternative foundations to economic theory?

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