Alger and Weibull (2013) present a model for the evolution of preferences under incomplete information and assortative matching. Their main result is that Homo Moralis - who maximizes a convex combination of her narrow self-interest and "the right thing to do" - is evolutionarily stable, if it...

The purpose of this paper is to show how institutional and evolutionary economics provide better insights as to whysome firms survive and others do not than does neoclassical economics. At the heart of the evolutionary theory isthe view that new firms are a manifestation of diversity and that...

Traditional finance is built on the rationality paradigm. This chapter discusses simple models from an alternative approach in which financial markets are viewed as complex evolutionary systems. Agents are boundedly rational and base their investment decisions upon market forecasting heuristics....

Recent advances in evolutionary theory have important implications for environmental economics. A short overview is offered of evolutionarythinking in economics. Subsequently, major concepts and approaches inevolutionary biology and evolutionary economics are presented andcompared. Attention is...

We consider the microfoundations controversy from the perspective ofeconomic evolution and show that the debatecan benefit from lessons learned in evolutionary biology. Althoughthe analogy between biology and economics hasbeen noted before, it has rarely focused on clarifying the micro-macro...

We consider the microfoundations controversy from the perspective of economic evolution. Although the analogy between biology and economics has been noted before, it has rarely focused on clarifying the micro-macro distinction in economic theory and modelling. The micro-macro debate is more...

This paper surveys work on dynamic heterogeneous agent models (HAMs) in economics and finance. Emphasis is given to simple models that, at least to some extent, are tractable by analytic methods in combination with computational tools. Most of these models are behavioral models with boundedly...