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Evolutionary Economic Models

Evolutionary economics is an economic theory that explores how economic systems and institutions evolve over time through the process of variation, selection, and retention of innovative practices, technologies, and organizational forms.

Evolutionary economics is a branch of economics that applies concepts from evolutionary biology to understand economic phenomena, particularly the dynamics of technological change, innovation, and economic development.

Evolutionary economics models often focus on the variation, selection, and adaptation processes that drive economic evolution over time.

Evolutionary Economics

  • Key idea: Economic processes evolve like biological systems with innovation and selection.

  • Modeling focus: Dynamic processes, innovation diffusion, path dependence.

  • Tools: Replicator dynamics, evolutionary game theory.

  • Emphasis: Processes rather than static equilibria.

References

  • Evolutionary Economics
  • Nelson, R.R., & Winter, S.G. (1982). An Evolutionary Theory of Economic Change. Harvard University Press.
  • Metcalfe, J.S. (1994). Evolutionary economics and creative destruction. Routledge.
  • Fontana, Magda. "The Santa Fe Perspective on Economics: emerging patterns in the science of complexity." WP CESMEP, University of Torino (2009).
  • Beinhocker, Eric D. "Evolution as computation: Implications for economic theory and ontology." Draft paper. Santa Fe: Santa Fe Institute.(A later version of this paper was published in 2011 as: Evolution as computation: Integrating selforganization with generalized Darwinism. Journal of Institutional Economics, 7 (3), pp. 393–423) (2010).
  • Nelson and Winter’s An Evolutionary Theory of Economic Change
  • England, Richard W. "Economic processes and political conflicts: contributions to modern political economy." (No Title) (1987).
  • Dopfer, Kurt. "Evolutionary economics: Framework for analysis." Evolutionary economics: program and scope. Dordrecht: Springer Netherlands, 2001. 1-44.