This book chapter demonstrates that there has been from Adam Smith to Vernon Smith a tradition of economic scholarship that is grounded in the decision calculus of individuals, or what F.A. Hayek referred to as the logic of choice, which requires neither the heroic assumptions of omniscience,...

Standard modeling procedures treat the behavior of economic variables using stochastic-determinate equations. Two alternatives to this approach arose in the last quarter of the twentieth century: deterministic nonlinear equation models and agent-based models. The class of deterministic nonlinear...