Survival of the Greenest
New Horizons in Institutional and Evolutionary Economics series
(Note that terms in italics have a separate entry.) Adaptation Either a state (‘being adapted’) or a process. As a process it denotes the adjustment through repeated selection and innovation forces acting upon a population of heterogeneous individuals or elements in an internally diverse population, with the result that over time individuals (representing strategies, behaviour, structure, technologies or products) become better adjusted to their selection environment. In evolutionary terms ‘better adjusted’ means a higher level of ﬁtness. Adaptation as a state is the (temporary) end result of adaptation as a process. This state represents an evolutionary sequence (memory) of accumulation of innovation and selection processes in the past. See Selection. Balance See Diversity. Bounded rationality Individuals and organizations (groups) do not consistently optimize a constant and ﬁxed exogenous utility function. Instead, they behave in accordance with adjusted or selected routines, imitation of others and myopia (employing a limited time horizon). Co-evolution A concept that originates from the synthesis of ecology and evolutionary biology. It denotes an evolutionary mechanism in which variation in one speciﬁc subsystem is subject to selection pressure arising from another subsystem. The concept is applied to purely biological systems (interaction between species) as well as to biological–gene– culture interactions and ecological–economic subsystem interactions. Co-evolution should be distinguished from co-dynamics; that is, nonevolutionary interaction between dynamic systems. See Combination. Combination (or recombination) An important source of major innovations. Complementary elements (technologies, organizations and institutions) form the basis and can change in joint co-operation via co-evolution....