This book is an overview of the new area of complexity economics, the application of models from complexity theory to the domain of economic science. These are interesting times for economic science as with information technology and globalization a new form of networked economy is emerging. These current changes in the deep architecture to our economies go well beyond the scope of the industrial age paradigm and require a re-imagination of economic science in an age of complexity. General equilibrium models that were derived from classical physics got mathematized during the 20th century, these models give us a picture of the economy as composed of isolated, purely rational individuals, optimizing over a well-defined set of preferences out of which we get a macro level general equilibrium in a somewhat static and timeless economy.
It was a paradigm that fitted well with industrial age mechanization. But today the limitations of general equilibrium theory are becoming more apparent as we build new models, models to individual agents that have bounded rationality, driven by a diversity of motives they are interconnected and interdependent. And it is out of these nonlinear interactions we get the emergence of economic institutions as network structures that are far-from-equilibrium, in an economy that is constantly changing from internal drivers as it develops over time through an evolutionary process.
Publish Data: 23-5-2017
Length: 43 pages