Complexity Economics

Catalog description

Complexity economics is the study of economic systems as evolving, complex systems. These systems consist of interacting individuals who perceive their environments, and take actions based on multiple criteria, which in turn affect their environments and the decisions available to other individuals. Complexity economics is not an extension of conventional, neo-classical economic theory and practice, which is based on the concepts of equilibrium, optimization and aggregation. Complexity economic attempts to understand economic phenomena through concepts of evolution, emergence, path dependency and the interdependent relationships between heterogenous individuals whose actions shape their environments. This offers a new basis for theory and practice that better reflects not only real problems and scenarios, but also how individuals make decisions and how those decisions have consequences for both the environment and society.