Title: Complexity Economics: a Different Framework for Economics
Abstract: In the early 1990s, Brian Arthur led a group at the Santa Fe Institute to develop an alternative approach to economics – he later called it “complexity economics.” Standard economics is based on the idea of super-rational actors operating in a static equilibrium world; complexity economics assumes actors in the economy do not necessarily face well-defined problems or use super-rationality. They explore, try to make sense, react and re-react to the outcomes they together create. The resulting economy is not in stasis but always forming, always “discovering” fresh novelty. In this non-equilibrium view of the economy, bubbles and crashes can happen, markets can be “gamed” or exploited, and history and institutions matter.
Biography: Brian Arthur is a leading economist and complexity scientist. He is known for his early work on how network effects lock markets in to the domination of a single player. He held the Morrison Chair in Economics and Population Studies at Stanford, and belongs to the Founders Society of the Santa Fe Institute. Among his honours are the Lagrange Prize in Complexity Science, the Schumpeter Prize in economics, and two honorary doctorates.
Handout 
