A macro economy as an ecology of plans

Wagner, Richard E.

doi:10.1016/j.jebo.2011.07.019

Cited by 92 publications

(25 citation statements)

References 27 publications

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“…Stability in one average statistic does not imply stability at all levels of the system (Wagner 2010(Wagner , 2012). There can exist macro level stability that coincides with orderly chaos within the economy.…”

Section: Macrostability and Microvolatilitymentioning

confidence: 99%

Entrepreneurship, search costs, and ecological rationality in an agent-based economy

Caton

2016

Rev Austrian Econ

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Since Coase's paper on the firm, transaction costs have occupied much attention as a field of economic inquiry. Yet, with few exceptions, neoclassical theory has failed to integrate transaction costs into its core. The dominant mode of theorizing depends upon Brouwer fixed points which cannot integrate transaction costs in more than a superficial manner. Agent-based modeling presents an opportunity for researchers to investigate the nature of transaction costs and integrate them into the core of economic theory. To the extent that transaction costs reduce economic efficiency, they provide opportunities for entrepreneurs to earn a profit by reducing these costs. We employ an extension of Epstein and Axtell's (1996) Sugarscape to demonstrate this point one type of transaction costs: search costs. When agents do not face the cost of finding a trading partner, the system quickly reaches a steady state with tightly constrained prices regardless of agent production strategies. When search costs are present, entrepreneurs may use competing strategies for production and exchange that allow them to earn higher revenues than they would earn otherwise. These cost reducing innovations tend to promote concatenate coordination (Klein 2012). The agent's production strategies represent technology in the form of mental models (Denzau and North 1994) that shape agent action with regard to the agent's environment. The success of these are dependent on their ability to overcome search costs. The average profit, market rate of return, earned by each of these mental structures tends to equalize as a result of competition.

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Section: Macrostability and Microvolatilitymentioning

confidence: 99%

Entrepreneurship, search costs, and ecological rationality in an agent-based economy

Caton

2016

Rev Austrian Econ

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“…It is an analytical proposal intended to make tractable North's (2005) and Loasby's (2012) challenges, i.e. : to erect scaffoldings (analytical frameworks) that allow us to deal with human interaction and the sources of complexity (and structural change) -scaffoldings being able to accommodate, at the same time intentionality and different "ecologies of plans" (Wagner 2012). main use of this approach here is to locate and understand the role of intentionality in explaining dynamic processes such as the emergence of novelty and structural change that are typical of complex systems.…”

Section: Discussionmentioning

confidence: 99%

The Evolution of Economic and Innovation Systems

Pyka¹,

Foster²

2015

Economic Complexity and Evolution

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“…Nevertheless, particularly within the Austrian tradition, the idea of self-organization developed drawing upon ideas from the Scottish Enlightenment developed, with Menger's (1892) theory of the spontaneous emergence of commodity money in primitive societies seminal in this regard. Hayek (1937Hayek ( , 1948Hayek ( , 1952 would also develop ideas of emergence and selforganization even before he came to apply these more specifically to discussions of evolutionary political economy later in his career (Koppl, 2009;Lavoie, 1989;Lewis, 2012;Rosser, 1999Rosser, , 2010Rosser, , 2012Wagner, 2010Wagner, , 2012.…”

Section: Introductionmentioning

confidence: 99%

Natural Selection versus Emergent Self-Organization in Evolutionary Political Economy

Rosser¹

2014

Entangled Political Economy

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Political economies evolve institutionally and technologically over time. This means that to understand evolutionary political economy one must understand the nature of the evolutionary process in its full complexity. From the time of Darwin and Spencer natural selection has been seen as the foundation of evolution. This view has remained even as views of how evolution operates more broadly have changed. An issue that some have viewed as an aspect of evolution that natural selection may not fully explain is that of emergence of higher order structures, with this aspect having been associated with the idea of emergence. In recent decades it has been argued that self-organization dynamics may explain such emergence, with this being argued to be constrained, if not overshadowed, by natural selection. Just as the balance between these aspects is debated within organic evolutionary theory, it also arises in the evolution of political economy, as between such examples of self-organizing emergence as the Mengerian analysis of the appearance of commodity money in primitive societies and the natural selection that operates in the competition between firms in markets.

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A macro economy as an ecology of plans

Cited by 92 publications

References 27 publications

Entrepreneurship, search costs, and ecological rationality in an agent-based economy

Entrepreneurship, search costs, and ecological rationality in an agent-based economy

The Evolution of Economic and Innovation Systems

Natural Selection versus Emergent Self-Organization in Evolutionary Political Economy

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