Browse by title

You are looking at 1 - 10 of 195 items :

  • Evolutionary Economics x
  • All accessible content x
Clear All
This content is available to you

Glen Atkinson, Eric R. Hake and Stephen P. Paschall

This content is available to you

Glen Atkinson, Eric R. Hake and Stephen P. Paschall

This content is available to you

Salvatore Rossi

This content is available to you

Riccardo Viale and Umberto Filotto

Real life problems are inside a complex environment. They are typically ill-defined problems; that is, the goals are not definite, we don’t know what counts as an alternative and how many alternatives there are, it’s unclear what the consequences might be and how to estimate their probabilities and utilities. Jim Savage dubbed this environment characterized by uncertainty as Large World. Small Worlds instead are in principle predictable and without surprises and they are characterized by the knowledge of all relevant variables, their consequences and probabilities. The conditions of Small World are the requirements of Neoclassical Rationality, as Herbert Simon stressed in his Nobel Lecture. In these worlds the problems may be well-defined but they can also be computationally intractable. As is well known, an example of a computational tractable problem is the dice game. Instead the well-defined problem of the chess game is computationally intractable. In any case the real world is most of the time large and these conditions of knowledge are rarely met. Since they are rarely met, the normative rational requirements of neoclassical economics are unjustified and the application of their theories can easily lead to a disaster. Is Finance an example of Large World? Or are there financial phenomena that may be considered examples of Small Worlds? And in this case may they be dealt with by rational tools such as probabilistic reasoning and utility maximization? And if this is the case, what is the role of financial literacy and education? Is financial literacy sufficient to empower the financial decision making of savers and investors or should it be strengthened by training them also in behavioural finance and “debiasing” techniques? And can financial literacy avoid including risk literacy, which is the technique used to reason easily about probability calculus and statistics?

This content is available to you

Edited by Maureen McKelvey and Jun Jin

This content is available to you

Cristiano Antonelli

The notion of endogenous innovation as the outcome of the creative response of firms to out-of-equilibrium conditions is the cornerstone of the new evolutionary complexity. This chapter explores the role of the reactivity of firms to out-of-equilibrium conditions and of knowledge governance in assessing the chances that creative responses actually take place as an alternative to adaptive responses. It implements a systemic frame able to show that: i) the quality of knowledge governance is a determinant in making the response of firms creative rather than adaptive; and ii) the levels of firms’ reactivity enhance the rates of introduction of innovations and increase total factor productivity.

This content is available to you

Jan Fagerberg

This content is available to you

Jan Fagerberg

This content is available to you

Standing on the shoulders of giants

The Economics of an Emergent System Property

Cristiano Antonelli

This chapter highlights the limits of current approaches to the economics of innovation. It also stresses their role in articulating a theory of innovation as an endogenous process that relies upon the characteristics of the system in which the response of firms to unexpected mismatches in both labour and factor markets takes place. The role of Marshallian contributions to Schumpeterian thinking is stressed.