Complexity and Evolution: Toward a New Synthesis for Economics

by David S. Wilson (Editor), Alan Kirman (Editor)

Overview

An exploration of how approaches that draw on evolutionary theory and complexity science can advance our understanding of economics.

Two widely heralded yet contested approaches to economics have emerged in recent years: one emphasizes evolutionary theory in terms of individuals and institutions; the other views economies as complex adaptive systems. In this book, leading scholars examine these two bodies of theory, exploring their possible impact on economics. Relevant concepts from evolutionary theory drawn on by the contributors include the distinction between proximate and ultimate causation, multilevel selection, cultural change as an evolutionary process, and human psychology as a product of gene-culture coevolution. Applicable ideas from complexity theory include self-organization, fractals, chaos theory, sensitive dependence, basins of attraction, and path dependence.

The contributors discuss a synthesis of complexity and evolutionary approaches and the challenges that emerge. Focusing on evolutionary behavioral economics, and the evolution of institutions, they offer practical applications and point to avenues for future research.

Contributors
Robert Axtell, Jenna Bednar, Eric D. Beinhocker, Adrian V. Bell, Terence C. Burnham, Julia Chelen, David Colander, Iain D. Couzin, Thomas E. Currie, Joshua M. Epstein, Daniel Fricke, Herbert Gintis, Paul W. Glimcher, John Gowdy, Thorsten Hens, Michael E. Hochberg, Alan Kirman, Robert Kurzban, Leonhard Lades, Stephen E. G. Lea, John E. Mayfield, Mariana Mazzucato, Kevin McCabe, John F. Padgett, Scott E. Page, Karthik Panchanathan, Peter J. Richerson, Peter Schuster, Georg Schwesinger, Rajiv Sethi, Enrico Spolaore, Sven Steinmo, Miriam Teschl, Peter Turchin, Jeroen C. J. M. van den Bergh, Sander E. van der Leeuw, Romain Wacziarg, John J. Wallis, David S. Wilson, Ulrich Witt

Product Details

ISBN-13:	9780262035385
Publisher:	MIT Press
Publication date:	08/19/2016
Series:	Strüngmann Forum Reports , #19
Pages:	408
Product dimensions:	6.00(w) x 9.10(h) x 1.50(d)
Age Range:	18 Years

About the Author

David S. Wilson is SUNY Distinguished Professor of Biology and Anthropology at Binghamton University and President of the Evolution Institute.

Alan Kirman is Emeritus Professor of Economics at Aix-Marseille University and Director of Studies at the École des hautes études en sciences sociales, Aix-en-Provence.

David S. Wilson is SUNY Distinguished Professor of Biology and Anthropology at Binghamton University and President of the Evolution Institute.

Alan Kirman is Emeritus Professor of Economics at Aix-Marseille University and Director of Studies at the École des hautes études en sciences sociales, Aix-en-Provence.

Alan Kirman is Emeritus Professor of Economics at Aix-Marseille University and Director of Studies at the École des hautes études en sciences sociales, Aix-en-Provence.

David S. Wilson is SUNY Distinguished Professor of Biology and Anthropology at Binghamton University and President of the Evolution Institute.

Alan Kirman is Emeritus Professor of Economics at Aix-Marseille University and Director of Studies at the École des hautes études en sciences sociales, Aix-en-Provence.

Paul W. Glimcher is Associate Professor of Neural Science and Psychology at the Center for Neural Science, New York University.

Herbert Gintis is Emeritus Professor of Economics at the University of Massachusetts and External Faculty at the Santa Fe Insitute.

Herbert Gintis is Emeritus Professor of Economics at the University of Massachusetts and External Faculty at the Santa Fe Insitute.

Paul W. Glimcher is Associate Professor of Neural Science and Psychology at the Center for Neural Science, New York University.

Enrico Spolaore is is Professor of Economics at Tufts University.

Peter J. Richerson is Distinguished Professor Emeritus at the University of California, Davis, and Visiting Professor at the Institute of Archaeology at University College London. He is the author of Not By Genes Alone: How Culture Transformed Human Evolution.

Scott E. Page is Associate Professor of Political Science, Complex Systems, and Economics at the University of Michigan.

David S. Wilson is SUNY Distinguished Professor of Biology and Anthropology at Binghamton University and President of the Evolution Institute.

Table of Contents

The Ernst Strüngmann Forum vii

List of Contributors ix

1 Introduction David S. Wilson Alan Kirman Julia Lupp 1

Challenges of Integrating Complexity and Evolution

2 Disequilibrium Adjustment and Economic Outcomes Alan Kirman Rajiv Sethi 15

3 Two Meanings of Complex Adaptive Systems David S. Wilson 31

4 Evolution and Market Complexity John E. Mayifield 47

5 Challenges of Integrating Complexity and Evolution into Economics Robert Axtell Alan Kirman Iain D. Couzin Daniel Fricke Thorsten Hens Michael E. Hochberg John E. Mayfield Peter Schuster Rajiv Sethi 65

Evolutionary Behavioral Economics

6 Proximate Mechanisms of Individual Decision-Making Behavior Paul W. Glimcher 85

7 A Typology of Human Morality Herbert Gintis 97

8 Evolutionary Behavioral Economics Terence C. Burnham Stephen E. G. Lea Adrian V. Bell Herbert Gintis Paul W. Glimcher Robert Kurzban Leonhard Lades Kevin McCahe Karthik Panchanathan Miriam Teschl Ulrich Witt 113

Evolution of Institutions and Organizations

9 The Diffusion of Institutions Enrico Spolaore Romain Wacziarg 147

10 Robust Institutional Design: What Makes Some Institutions More Adaptable and Resilient to Changes in Their Environment Than Others? Jenna Bednar 167

11 Evolvability of Organizations and Institutions John F. Padgett 185

12 Evolution of Institutions and Organizations Thomas Currie Peter Turchin Jenna Bednar Peter J. Richerson Georg Schwesinger Sven Steinmo Romain Wacziarg John J. Wallis 201

Shaping the Evolution of Complex Societies

13 Adaptation and Maladaptation in the Past: A Case Study and Some Implications Sander E. van der Leeuw 239

14 Innovation Policy as Creating Markets, Not Only Fixing Them: Implications for Complexity Theory Mariana Mazzucato 271

15 Complexity Economics and Workaday Economic Policy David Colander 285

16 Advancing Agent Zero Joshua M. Epstein Julia Chelen 299

17 Not Half Bad: A Modest Criterion for Inclusion Scott E. Page 319

18 Shaping the Evolution of Complex Societies John Gowdy Mariana Mazzucato Jeroen C. J. M. van den Bergh Sander E. van der Leeuw David S. Wilson 327

Bibliography 351

Subject Index 389

What People are Saying About This

Joe Henrich

This 'how-to guide' lays out a design for renovating economics and constructing a fully integrated approach to human psychology, behavior, and society. This eclectic crew of researchers has begun the challenging job of scavenging the best available tools, methods, and insights from evolutionary biology, behavioral economics, ecology, psychology, neuroscience, and anthropology and then retrofitting them in this bold scientific endeavor.

Endorsement

This 'how-to guide' lays out a design for renovating economics and constructing a fully integrated approach to human psychology, behavior, and society. This eclectic crew of researchers has begun the challenging job of scavenging the best available tools, methods, and insights from evolutionary biology, behavioral economics, ecology, psychology, neuroscience, and anthropology and then retrofitting them in this bold scientific endeavor.

—Joe Henrich, Professor of Human Evolutionary Biology, Harvard University; author of The Secret of Our Success and coauthor of Why Humans Cooperate

From the Publisher

Complexity and Evolution provides a map of the path less followed by economics over the past fifty years—a path of complex, emergent behavior, and multiple evolutionary equilibria. This path holds great promise when making sense of our often jumbled economic and financial world.

—Andrew G. Haldane, Chief Economist, Bank of England

There are countless books now on interdisciplinary economics, commonly called econophysics. The editors address the question 'How can we comprehend the key ideas, with some applications that we all care about?' In answering this question, they and their contributors have produced a remarkably readable book, equally suitable for a course in economics or physical science. It is also ideal for self-study by practitioners who want to better understand some of the more complex ideas characterizing current work in this area.

—H. Eugene Stanley, William Fairfield Warren Distinguished Professor, Boston University

This 'how-to guide' lays out a design for renovating economics and constructing a fully integrated approach to human psychology, behavior, and society. This eclectic crew of researchers has begun the challenging job of scavenging the best available tools, methods, and insights from evolutionary biology, behavioral economics, ecology, psychology, neuroscience, and anthropology and then retrofitting them in this bold scientific endeavor.

—Joe Henrich, Professor of Human Evolutionary Biology, Harvard University; author of The Secret of Our Success and coauthor of Why Humans Cooperate

Andrew G. Haldane

Complexity and Evolution provides a map of the path less followed by economics over the past fifty years—a path of complex, emergent behavior, and multiple evolutionary equilibria. This path holds great promise when making sense of our often jumbled economic and financial world.

H. Eugene Stanley

There are countless books now on interdisciplinary economics, commonly called econophysics. The editors address the question 'How can we comprehend the key ideas, with some applications that we all care about?'In answering this question, they and their contributors have produced a remarkably readable book, equally suitable for a course in economics or physical science. It is also ideal for self-study by practitioners who want to better understand some of the more complex ideas characterizing current work in this area.