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Ricardo Hausmann & J. Doyne Farmer on Evolving Technologies & Market Ecologies (EPE 03)

COMPLEXITY

CHAPTER

Ecology - The Interactions of Specialists

Ecology is about the interactions of specialists. So we can s have a trophic level, grassis at the bottom, zebras are in the middle, lions are at the top. Adam smith realizes that specialization is the key to the way the economy works. And ecology also sets up how evolution happens. S the environment that a firm is evalding in depends on the entire ecology that the firm is sitting in. If you want to reduce inequality, for example, you had better understand what's causing it in the first place.

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