Complexity and Evolution: A New Synthesis for Economics, Essay Example

In Complexity and Evolution: A New Synthesis for Economics, the authors argue that the evolution of economics is consistent with the biological theory of evolution. While it is assumed that the world has reached an economic equilibrium, this is not the case. In addition, economic models are currently created in a manner that does not reflect the true wants and needs of modern man. It is therefore necessary to adjust these assumptions in order to ensure that mathematical models utilized to understand these trends are realistic. This argument is supported through the demonstration that computer models can be used to generate these gaps in understanding in both the scientific and mathematical setting. Research techniques that are used in the sciences can be applied to the fields of business and economics as well. This can be done by engaging in a fully-rounded approach, in which four questions in parallel are addressed, “concerning the function, mechanisms, development, and the history of the systems” (Wilson & Gowdy, 2013). In addition, the author states that evolutionary behavioral economics, the evolution of institutions, and determining the evolution of complex societies is a necessary component of this process (Wilson et al., 2015). The conclusion of this work is that these four factors need to be addressed in order to ensure that economics continues to be applicable to business practices and human needs. This article could potentially be expanded by drawing connections between economics and other aspects of evolutionary principles, such as natural selection, to determine which economic principles will cease to exist due to a lack of utility. A question that I have regarding this article is “How can this research be practically utilized in the form of a research project to resolve the proposed problems in economics?”

In Two Meanings of Complex Adaptive Systems, the author argues that computers can be utilized to mimic human behavior and as a consequence the complex systems theory dictates how programs mirror the evolutionary theories of natural selection and random mutation. Ultimately, the systems that are able to adapt to their environments will survive while those are unable to will not. This point is supported by explaining the phenomena covered by the idea of the complex adaptive system to include “A complex system that is adaptive as a system” and “A complex system composed of agents that employ adaptive strategies” (Wilson, 2015). It was concluded that these definitions of the complex adaptive system allow it to be comparable to our understanding of evolutionary biology. This project could be expanded by providing additional examples to demonstrate the utility of the two definitions of the complex adaptive system detailed in the article. Furthermore, it could describe more closely how random mutations in biology is a parallel to this computational process. A question that I have regarding this article is “How can economists utilize the information that is proposed in this article immediately?” In addition, a second question I have regarding this article is “What type of research has been previously conducted on this topic that has allowed you to draw these observations and conclusions?

References

Wilson DS. (2015). Two Meanings of Complex Adaptive Systems. Complexity and Evolution: A New Synthesis for Economics.

Wilson DS, Gowdy JM. (2013). Evolution as a general theoretical framework for economics and public policy. Journal of Economic Behavior & Organization, 90, S3–S10. doi:10.1016/j.jebo.2012.12.008

Wilson DS, Kirman A, Beinhocker E, Turchin P,Witt U. (2015).Complexity and Evolution: A New Synthesis for Economics.Ernst Strungmann Forum.