COMPLEXITY

W. Brian Arthur (Part 2) on "Prim Dreams of Order vs. Messy Vitality" in Economics, Math, and Physics

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Oct 7, 2021
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INSIGHT

Static vs. Dynamic Models

  • Economics, like early biology, used static models.
  • Algorithmic thinking allows for evolving processes like Darwinian evolution.
INSIGHT

Equilibrium Bias

  • Standard math biases us towards equilibrium thinking, unsuitable for today's dynamic world.
  • We need non-equilibrium models that embrace constant change.
ANECDOTE

Marshall's Vision

  • Alfred Marshall, involved in mathematizing economics, said its "mecca" is biology.
  • He recognized the need for evolutionary economics but found it hard to implement.
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