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firms survive and others do not than does neoclassical economics. At the heart of the evolutionary theory isthe view that …
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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....
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Recent advances in evolutionary theory have important implications for environmental economics. A short overview is …
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, it has rarely focused on clarifying the micro-macro distinction in economic theory and modelling.The macroevolution … topicsincorporating ideas from evolutionary theory into economics are:economic exaptations, macroeconomic consequencesof institutions, and …
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theory and modelling. The micro-macro debate is more developed in biology than in economics owing to a greater degree of … insights directly relevant for economic theory and ones that hinge on unique features of biological systems. We argue that both …
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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...
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Recent work on complex adaptive systems for modeling financialmarkets is surveyed. Financia1 markets areviewed as evolutionary systems between different, competing tradingstrategies. Agents are boundedly rational inthe sense that they tend to follow strategies that have performedwell, according...
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