SlideShare uma empresa Scribd logo
1 de 19
“ The Origin of Wealth” Evolution, Complexity, and the Radical Remaking of Economics
How Is Wealth Created?
Traditional Economics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Definition:  The set of concepts and theories articulated in undergraduate and intermediate graduate-level textbooks.
The Need for a Change ,[object Object],[object Object],[object Object],[object Object]
Sugar and Spice ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Five “Big Ideas” That Distinguish Complexity Economics from Traditional Economics  (from table 4-1, p. 97) No mechanism for endogenously creating novelty, or growth in order and complexity The evolutionary process of differentiation, selection, and amplification provides the system with novelty and is responsible for its growth in order and complexity Evolution Micro- and macroeconomics remain separate disciplines No distinction between micro- and macroeconomics; macro patterns are emergent result of micro-level behaviors and interactions Emergence Assume agents only interact indirectly through market mechanisms (e.g., auctions) Explicitly model interactions between individual agents; networks of relationships change over time Networks Modeled collectively; use complex deductive calculations to make decisions; have complete information; make no errors and have no biases; have no need for learning or adaptation (are already perfect) Modeled individually; use inductive rules of thumb to make decisions; have incomplete information; are subject to errors and biases; learn and adapt over time Agents Closed, static, linear systems in equilibrium Open, dynamic, nonlinear systems, far from equilibrium Dynamics Traditional Economics Complexity Economics
Dynamics: The Delights of Disequilibrium ,[object Object],[object Object],[object Object],[object Object],[object Object]
Agents: Mind Games ,[object Object],[object Object],[object Object],[object Object],[object Object]
Networks ,[object Object],[object Object],[object Object],[object Object]
Emergence: The Puzzle of Patterns ,[object Object],[object Object],[object Object],[object Object]
The Algorithm of Evolution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Physical Technology Methods and designs for transforming matter, energy, and information from one state into another in pursuit of a goal or goals. (p. 244) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Social Technology Methods and designs for organizing people in pursuit of goals or goals. (p. 262) ,[object Object],[object Object],[object Object]
Business Plans A business is a person, or and organized group of people, who transforms matter, energy, and information from one state into another with the goal of making a profit. (p. 280) ,[object Object],[object Object],[object Object],[object Object]
New Definitions of Wealth ,[object Object],[object Object],[object Object],[object Object],[object Object]
Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Finance: Ecosystems of Expectations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Politics and Policy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Questions?

Mais conteúdo relacionado

Mais procurados

Case Study Analysis on General Electric
Case Study Analysis on General ElectricCase Study Analysis on General Electric
Case Study Analysis on General ElectricSubhi Pradhan
 
Ford motor analysis
Ford motor analysisFord motor analysis
Ford motor analysisNeetikaRao1
 
The Army Crew casestudy
The Army Crew casestudyThe Army Crew casestudy
The Army Crew casestudyElina
 
the theory of canoe management
the theory of canoe managementthe theory of canoe management
the theory of canoe managementGhizlane F
 
Leo Burnett case study
Leo Burnett case studyLeo Burnett case study
Leo Burnett case studyGoshi Fujimoto
 
12 Success Lead Change Append 2 Nissan
12 Success Lead Change Append 2 Nissan12 Success Lead Change Append 2 Nissan
12 Success Lead Change Append 2 NissanRaza Shah CMQ/OE
 
Continuous Performance Management - An Adoption Roadmap
Continuous Performance Management - An Adoption  RoadmapContinuous Performance Management - An Adoption  Roadmap
Continuous Performance Management - An Adoption RoadmapGautam Jayasurya
 
Ge Digital Revolution
Ge Digital RevolutionGe Digital Revolution
Ge Digital RevolutionGhouse S
 
Merrimack tractors analysis - final
Merrimack tractors   analysis - finalMerrimack tractors   analysis - final
Merrimack tractors analysis - finalRajendra Inani
 
OBHR601 Session 6: Moving from Team Member to Team Leader
OBHR601 Session 6: Moving from Team Member to Team LeaderOBHR601 Session 6: Moving from Team Member to Team Leader
OBHR601 Session 6: Moving from Team Member to Team LeaderAlvin J. Lin
 
The discipline of teams
The discipline of teamsThe discipline of teams
The discipline of teamsRoshanSinha19
 
Silvio Napoli at Schindler India-HBS Case Study
Silvio Napoli at Schindler India-HBS Case StudySilvio Napoli at Schindler India-HBS Case Study
Silvio Napoli at Schindler India-HBS Case StudyRawad Mroueh
 
Corning Incorporated Case Study MBA OUM
Corning Incorporated Case Study MBA OUMCorning Incorporated Case Study MBA OUM
Corning Incorporated Case Study MBA OUMShah Sheikh
 
ISB Case Competition | Final round
ISB Case Competition | Final roundISB Case Competition | Final round
ISB Case Competition | Final roundTarun Gupta
 
Ford Motor Strategic Management
Ford Motor Strategic ManagementFord Motor Strategic Management
Ford Motor Strategic ManagementBASREEN AHMAD
 
Case Study: Johannes Linden:Managing the Global Executive Committee
Case Study: Johannes Linden:Managing the Global Executive CommitteeCase Study: Johannes Linden:Managing the Global Executive Committee
Case Study: Johannes Linden:Managing the Global Executive CommitteeParth Sarthi Gairola
 

Mais procurados (20)

Case Study Analysis on General Electric
Case Study Analysis on General ElectricCase Study Analysis on General Electric
Case Study Analysis on General Electric
 
Ford motor analysis
Ford motor analysisFord motor analysis
Ford motor analysis
 
Vitality Health Enterprise
Vitality Health EnterpriseVitality Health Enterprise
Vitality Health Enterprise
 
The Army Crew casestudy
The Army Crew casestudyThe Army Crew casestudy
The Army Crew casestudy
 
the theory of canoe management
the theory of canoe managementthe theory of canoe management
the theory of canoe management
 
Leo Burnett case study
Leo Burnett case studyLeo Burnett case study
Leo Burnett case study
 
12 Success Lead Change Append 2 Nissan
12 Success Lead Change Append 2 Nissan12 Success Lead Change Append 2 Nissan
12 Success Lead Change Append 2 Nissan
 
Continuous Performance Management - An Adoption Roadmap
Continuous Performance Management - An Adoption  RoadmapContinuous Performance Management - An Adoption  Roadmap
Continuous Performance Management - An Adoption Roadmap
 
Ge Digital Revolution
Ge Digital RevolutionGe Digital Revolution
Ge Digital Revolution
 
Merrimack tractors analysis - final
Merrimack tractors   analysis - finalMerrimack tractors   analysis - final
Merrimack tractors analysis - final
 
OBHR601 Session 6: Moving from Team Member to Team Leader
OBHR601 Session 6: Moving from Team Member to Team LeaderOBHR601 Session 6: Moving from Team Member to Team Leader
OBHR601 Session 6: Moving from Team Member to Team Leader
 
Lego case
Lego caseLego case
Lego case
 
class1 MBA
class1 MBAclass1 MBA
class1 MBA
 
OKR part-II
OKR part-IIOKR part-II
OKR part-II
 
The discipline of teams
The discipline of teamsThe discipline of teams
The discipline of teams
 
Silvio Napoli at Schindler India-HBS Case Study
Silvio Napoli at Schindler India-HBS Case StudySilvio Napoli at Schindler India-HBS Case Study
Silvio Napoli at Schindler India-HBS Case Study
 
Corning Incorporated Case Study MBA OUM
Corning Incorporated Case Study MBA OUMCorning Incorporated Case Study MBA OUM
Corning Incorporated Case Study MBA OUM
 
ISB Case Competition | Final round
ISB Case Competition | Final roundISB Case Competition | Final round
ISB Case Competition | Final round
 
Ford Motor Strategic Management
Ford Motor Strategic ManagementFord Motor Strategic Management
Ford Motor Strategic Management
 
Case Study: Johannes Linden:Managing the Global Executive Committee
Case Study: Johannes Linden:Managing the Global Executive CommitteeCase Study: Johannes Linden:Managing the Global Executive Committee
Case Study: Johannes Linden:Managing the Global Executive Committee
 

Semelhante a The Origin of Wealth

The wisdom economy
The wisdom economyThe wisdom economy
The wisdom economyherbalin
 
Foundations of Competitive Strategy (Part I)
Foundations of Competitive Strategy (Part I)Foundations of Competitive Strategy (Part I)
Foundations of Competitive Strategy (Part I)ProfessorDeitz
 
Current trends in strategic managemet
Current trends in strategic managemetCurrent trends in strategic managemet
Current trends in strategic managemetBabasab Patil
 
Finance & Capital in the Integral Age
Finance & Capital in the Integral AgeFinance & Capital in the Integral Age
Finance & Capital in the Integral AgeSaid E. Dawlabani
 
An ecology for systemic change. How to foster and empower disruptive innovati...
An ecology for systemic change. How to foster and empower disruptive innovati...An ecology for systemic change. How to foster and empower disruptive innovati...
An ecology for systemic change. How to foster and empower disruptive innovati...Helene Finidori
 
Lecture1 Basic Economic Concepts (1)
Lecture1  Basic Economic Concepts (1)Lecture1  Basic Economic Concepts (1)
Lecture1 Basic Economic Concepts (1)katerinamailru
 
Fresh Directions in Economics
Fresh Directions in EconomicsFresh Directions in Economics
Fresh Directions in Economicstutor2u
 
Deep Sustainability - Infrastructure, Institutions, Technologies, World View
 Deep Sustainability -  Infrastructure, Institutions, Technologies, World View Deep Sustainability -  Infrastructure, Institutions, Technologies, World View
Deep Sustainability - Infrastructure, Institutions, Technologies, World ViewLonnie Gamble
 
Economics needs a scientific revolution Nature Oct 2008
Economics needs a scientific revolution   Nature Oct 2008Economics needs a scientific revolution   Nature Oct 2008
Economics needs a scientific revolution Nature Oct 2008Conor McCabe
 
Risk Management and Hedge Funds
Risk Management and Hedge FundsRisk Management and Hedge Funds
Risk Management and Hedge FundsBarry Schachter
 
Building The Organisation Of Tomorrow LIDA
Building The Organisation Of Tomorrow   LIDABuilding The Organisation Of Tomorrow   LIDA
Building The Organisation Of Tomorrow LIDABryan Fenech
 
Development of Management Thought
Development of Management ThoughtDevelopment of Management Thought
Development of Management Thoughtamanpreetbhamra
 

Semelhante a The Origin of Wealth (20)

The wisdom economy
The wisdom economyThe wisdom economy
The wisdom economy
 
Miller 14e 447476_01
Miller 14e 447476_01Miller 14e 447476_01
Miller 14e 447476_01
 
Miller 14e 447476_01
Miller 14e 447476_01Miller 14e 447476_01
Miller 14e 447476_01
 
Foundations of Competitive Strategy (Part I)
Foundations of Competitive Strategy (Part I)Foundations of Competitive Strategy (Part I)
Foundations of Competitive Strategy (Part I)
 
Current trends in strategic managemet
Current trends in strategic managemetCurrent trends in strategic managemet
Current trends in strategic managemet
 
Finance & Capital in the Integral Age
Finance & Capital in the Integral AgeFinance & Capital in the Integral Age
Finance & Capital in the Integral Age
 
Econ
EconEcon
Econ
 
Institutional and Capacity Development
Institutional and Capacity DevelopmentInstitutional and Capacity Development
Institutional and Capacity Development
 
An ecology for systemic change. How to foster and empower disruptive innovati...
An ecology for systemic change. How to foster and empower disruptive innovati...An ecology for systemic change. How to foster and empower disruptive innovati...
An ecology for systemic change. How to foster and empower disruptive innovati...
 
What is Complexity For?
What is Complexity For?What is Complexity For?
What is Complexity For?
 
Lecture1 Basic Economic Concepts (1)
Lecture1  Basic Economic Concepts (1)Lecture1  Basic Economic Concepts (1)
Lecture1 Basic Economic Concepts (1)
 
Systems Thinking
Systems Thinking Systems Thinking
Systems Thinking
 
Fresh Directions in Economics
Fresh Directions in EconomicsFresh Directions in Economics
Fresh Directions in Economics
 
Deep Sustainability - Infrastructure, Institutions, Technologies, World View
 Deep Sustainability -  Infrastructure, Institutions, Technologies, World View Deep Sustainability -  Infrastructure, Institutions, Technologies, World View
Deep Sustainability - Infrastructure, Institutions, Technologies, World View
 
Managerial Economics Question Paper
Managerial Economics Question PaperManagerial Economics Question Paper
Managerial Economics Question Paper
 
Economics needs a scientific revolution Nature Oct 2008
Economics needs a scientific revolution   Nature Oct 2008Economics needs a scientific revolution   Nature Oct 2008
Economics needs a scientific revolution Nature Oct 2008
 
Ppt ch03
Ppt ch03Ppt ch03
Ppt ch03
 
Risk Management and Hedge Funds
Risk Management and Hedge FundsRisk Management and Hedge Funds
Risk Management and Hedge Funds
 
Building The Organisation Of Tomorrow LIDA
Building The Organisation Of Tomorrow   LIDABuilding The Organisation Of Tomorrow   LIDA
Building The Organisation Of Tomorrow LIDA
 
Development of Management Thought
Development of Management ThoughtDevelopment of Management Thought
Development of Management Thought
 

Último

Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentationbaron83
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023Steve Rader
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZKanakChauhan5
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 

Último (20)

Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentation
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZ
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 

The Origin of Wealth

  • 1. “ The Origin of Wealth” Evolution, Complexity, and the Radical Remaking of Economics
  • 2. How Is Wealth Created?
  • 3.
  • 4.
  • 5.
  • 6. Five “Big Ideas” That Distinguish Complexity Economics from Traditional Economics (from table 4-1, p. 97) No mechanism for endogenously creating novelty, or growth in order and complexity The evolutionary process of differentiation, selection, and amplification provides the system with novelty and is responsible for its growth in order and complexity Evolution Micro- and macroeconomics remain separate disciplines No distinction between micro- and macroeconomics; macro patterns are emergent result of micro-level behaviors and interactions Emergence Assume agents only interact indirectly through market mechanisms (e.g., auctions) Explicitly model interactions between individual agents; networks of relationships change over time Networks Modeled collectively; use complex deductive calculations to make decisions; have complete information; make no errors and have no biases; have no need for learning or adaptation (are already perfect) Modeled individually; use inductive rules of thumb to make decisions; have incomplete information; are subject to errors and biases; learn and adapt over time Agents Closed, static, linear systems in equilibrium Open, dynamic, nonlinear systems, far from equilibrium Dynamics Traditional Economics Complexity Economics
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.